“I received a Kakao message asking me to check my refund amount on the National Tax Service. It is convenient to confirm the refund amount through HomeTax. I think the advantage is that I can use it with peace of mind.” (Lee, 30s office worker)
“I am likely to use the National Tax Service rather than a private company for tax-related matters. Last year, I received a refund using Samjeomsam, and this year I plan to try the National Tax Service's One-Click service.” (Kim, 50s self-employed)
As the National Tax Service launched a "One-Click" service that allows taxpayers to receive up to five years of comprehensive income tax refunds with just one click for free, the "Samjeomsam" service, which is a leading representative in the tax platform industry operated by Jobis & Villains, is facing a crisis. Jobis & Villains recorded unprecedented performance with sales surpassing 80 billion won last year, primarily driven by the Samjeomsam service. However, since the National Tax Service's new service is free and does not require the burden of personal information provision, it is expected that a significant number of users will switch to it.
◇ The National Tax Service directly helps find refunds for free
According to reports from the National Tax Service and the tax industry on the 2nd, the National Tax Service opened the One-Click comprehensive income tax refund service on the 31st of last month. The National Tax Service explained that the One-Click service displays the refund amount for up to five years at once and allows users to receive refunds quickly and easily. This is a fulfillment of the promise made by Commissioner Kang Min-soo upon his inauguration in July last year. The National Tax Service is sequentially sending messages to eligible individuals, guiding them to check their refund amounts.
Reactions from taxpayers to the One-Click service have been explosive. According to the National Tax Service, on the first day of the service, which was on the 31st of last month, 280,000 people accessed the One-Click service. As of 3 p.m. that same day, reports showed that 80,000 individuals had claimed a refund totaling 6 billion won. The National Tax Service announced that it plans to return a total of 290 billion won to approximately 3.11 million expected beneficiaries.
Previously, the paid refund service Samjeomsam faced controversy when subscribers who applied for refunds experienced penalties due to excessive applications. As the popularity of Samjeomsam grew, applications for comprehensive income tax refunds nearly doubled, causing the National Tax Service's staff to be overwhelmed with work. The number of refund applications jumped from 373,000 in 2022 to 653,000 in just the first half of last year.
◇ The Korean Association of Certified Public Tax Accountants also welcomes the National Tax Service's One-Click service
With the National Tax Service introducing a free alternative service to Samjeomsam, the possibility of absorbing customers from Samjeomsam has increased. The biggest advantage of the National Tax Service's One-Click service is that it is free. In contrast, Samjeomsam provides estimated refund amounts when users input their personal information, and takes a commission of 10-20% of the actual refund amount once it is processed. In that process, Samjeomsam is granted access to HomeTax data, including the user's income level.
The Korean Association of Certified Public Tax Accountants, which is monitoring the Samjeomsam service, is welcoming the launch of the National Tax Service's One-Click service. A representative from the association noted, “The launch of the One-Click service is something the National Tax Service should have done,” adding that “the country should help prevent Samjeomsam from charging small business owners.” Additionally, it was explained that “there is little overlap in the user base between Samjeomsam subscribers and existing tax accountant clients, so the Korean Association of Certified Public Tax Accountants is not likely to be negatively affected by the National Tax Service's One-Click service.”
◇ Jobis & Villains to continue operating the Samjeomsam service
Jobis & Villains, which operates Samjeomsam, is facing a red flag in its business. The company’s sales increased from 3.5 billion won in 2020 to 31.1 billion won in 2021, 49.6 billion won in 2022, and 50.7 billion won in 2023. Last year, the sales reached an all-time high of 86.2 billion won, with a cumulative subscriber base exceeding 20 million and cumulative tax refunds surpassing 1 trillion won.
To survive, Jobis & Villains finds it imperative to diversify its business and is aiming for global expansion with the Samjeomsam service. In October last year, the company even established a corporation in Japan, where the tax laws are similar to those of Korea. According to the tax industry, the tax refund market in Japan is 2-3 times larger than in Korea, but there are no large consumer-targeted (B2C) platforms like Samjeomsam. Jobis & Villains is reportedly developing a refund algorithm aimed at the Japanese market.
A representative from Jobis & Villains stated, “We plan to continue the Samjeomsam refund guidance service while monitoring customer usage of the National Tax Service's services.”