Korea Association of Tax Accountants to launch AI-powered Tax Love web platform by December
The Korea Association of Tax Accountants has launched a significant initiative aimed at transforming the landscape of tax services in South Korea. Announced on the 30th of the month, the association intends to distribute a web-based version of its popular "Tax Love" software by December, marking a critical step in adapting to an increasingly digital world. In conjunction with Newgen Solution, a deal was formalised at the Korea Tax Association's headquarters in Seocho-dong, Seoul, to develop this next-generation tax accounting system, which will incorporate cloud and AI technology.
This latest venture signifies the continuation of a productive collaboration between the Tax Association and Newgen Solution, which has previously delivered innovations like "Tax Love 2" in 2013 and "Tax Love Pro" in 2016. The newly developed web version is anticipated to significantly enhance operational efficiency for tax offices. By leveraging AI to automate core functions such as journal entries and tax processing, the system aims to alleviate the traditionally heavy workload, particularly concerning labour-intensive tasks associated with South Korea’s major social insurances. Chairman Goo Jae-yi expressed optimism regarding the project, stating, “We expect the work environment to be greatly improved through cloud and AI-based smart work innovation.” This shift not only seeks to foster greater efficiency but also aims to bolster the stature and capabilities of tax professionals in a rapidly evolving marketplace.
The drive toward digital innovation is not solely confined to the Korea Association of Tax Accountants. The Korea Institute of Certified Public Accountants (KICPA) is also advancing its technological capabilities through the introduction of 'ChatCPA (Beta)', an AI-driven accounting assistant designed to provide members with vital resources on accounting and tax regulations. As reported, this platform includes access to K-IFRS standards and a vast repository of over 260,000 tax law-related precedents, reflecting a commitment to continuous improvement as tax laws frequently undergo revisions.
Furthermore, South Korea's National Tax Service (NTS) has been strategically enhancing its digital services, making large investments in AI technology. The NTS announced the year 2024 as the inaugural year of AI Tax Administration, pledging to invest KRW 30 billion over two years to refine and expand its digital transformation efforts. Recent advancements have already shown demonstrable success; the introduction of AI-driven tax consultations has propelled the success rate of queries from a mere 24% to an impressive 98%. Innovations like these, including an upcoming redesign of the Hometax interface to improve user experience, are poised to simplify tax compliance for residents, reflecting a broader global trend towards digital efficiency in tax administration.
Collectively, these initiatives highlight South Korea’s commitment to embracing cutting-edge technology as a means to improve tax services and administration. With the country's spending on AI projected to reach $2 billion in 2023 and expected to grow further, the substantial investments from major corporations showcase a collective effort to harness AI for economic advancement. This wave of digital transformation not only aims to streamline internal processes but also aspires to redefine the relationship that taxpayers have with tax agencies, moving towards a more user-friendly, hassle-free system. As companies, government agencies, and educational institutions align their strategies to integrate AI and digital technologies, the benefits for tax professionals and taxpayers alike are set to be profound.