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Technology Case Study AI International

Successful Implementation of AI Tax Helpline in South Korea

Arunika Consulting

The implementation of AI Tax Helpline technology by the National Tax Service (NTS) in South Korea is a successful example of digital transformation in tax services launched in 2024. This technology uses artificial intelligence-based voice recognition to provide consultation services via telephone.

Here are details of its application and impact:

1. Training and Database

This AI system was trained using more than 2 million taxpayer question records, as well as large amounts of tax regulations, tax decisions, and judicial precedents. This allows the system to understand and answer various taxpayer questions accurately and contextually.

2. Working Mechanism

The AI Tax Helpline interaction process runs as follows:

  • Identity Verification: When taxpayers call for help (for example after receiving a reporting notification), a virtual assistant answers and verifies the caller’s identity using the telephone number registered in the database.
  • Tailored Information: The system provides basic information tailored specifically to that taxpayer’s needs.
  • Real-Time Support: During the call, the system sends additional resources such as Frequently Asked Questions (FAQ), video links, and step-by-step instructions via text message real-time.
  • Follow-up: After the call is complete, taxpayers can click the provided link to directly access the reporting section and continue their tax reporting process.

3. Significant Impact on Performance

The implementation of this technology provides drastic efficiency improvements for NTS:

  • Call Answer Rate: The successful call answer rate jumped sharply from only 26% in 2023 to 98% in 2024.
  • Call Volume: NTS successfully answered a total of 1.42 million calls, which is 2.5 times more than the previous year.
  • AI Contribution: Around 74% of those calls were fully managed by voice-based virtual assistants without human intervention.
  • Resource Efficiency: The efficiency impact from implementing this AI system is equivalent to recruiting 1,000 additional employees.