Catenaa, Sunday, October 05, 2025-The South Korean city of Incheon plans to confiscate cryptocurrency from residents who fail to pay their water bills, officials said Monday, marking a first-of-its-kind initiative in the country.
The Waterworks Headquarters will run a one-month pilot starting November 1.
During this period, officials will cross-check unpaid water bills with domestic crypto exchange records, including Upbit and Bithumb. Residents identified with holdings will receive official warnings before authorities move to liquidate assets if payments remain overdue.
The program targets individuals owing more than 500,000 won ($360), who account for roughly 34% of unpaid water bills, totaling 813 million won ($580,260).
City officials noted that residents experiencing financial hardship may request deferred payments or installments. Jang Byung-hyun, head of Incheon Waterworks, said the initiative will strengthen fiscal management while ensuring essential public services remain funded.
Elsewhere in South Korea, North Gyeongsang Province is preparing a similar “special collection” period for November and December.
Local authorities there have already seized 10.2 billion won ($7.3 million) in assets, collecting 4.9 billion won ($3.5 million) in unpaid taxes, including cryptocurrency and other intangible holdings.
The pilot programs highlight growing government efforts to integrate digital assets into traditional tax and payment enforcement frameworks.
South Korea’s younger population in their 20s, has faced sluggish income growth, with inflation-adjusted earnings rising less than 2% annually from 2014 to 2024.
