Cryptocurrencies such as Bitcoin (BTC) accounted for the largest share of South Korea’s reported overseas assets in the latest report from South Korea’s tax organization.
Korea National Tax Service (NTS) release On September 20, officials announced that a total of 1,432 individuals and businesses had reported overseas cryptocurrency accounts this year.
The total amount of cryptocurrency reported was 130.8 trillion Korean won (KRW), or $98 million, accounting for more than 70% of all reported overseas assets.
According to official data, a total of 5,419 entities reported their overseas financial accounts, holding assets such as cryptocurrencies, stocks, and deposits and savings totaling 186.4 trillion won ($140 million).
While cryptocurrencies are the largest overseas asset in terms of reported asset amounts, deposits and savings accounts top the list in terms of reported numbers, with 2,952 individuals and companies reporting holding 22.9 trillion won ($17 million). Another 1,590 entities reported holding shares worth 23.4 trillion won ($17.6 million).
related: South Korea plans to submit bill to freeze North Korean crypto assets: report
NTS mentioned that the tax supervisory authority is planning to conduct strict scrutiny on those who fail to declare overseas financial accounts. The NTS noted that the agency has been compiling cross-border information exchange data, foreign exchange data and relevant agency notification data, adding that fines will be imposed on those who violate the regulations. The supervisory authority stated:
“To address the risk of potential tax base erosion with virtual assets, tax authorities around the world, including the IRS, are preparing to exchange information under the Information Exchange Reporting Regulations.”
As a largely crypto-friendly country, South Korea has closely monitored cryptocurrency tax rules in recent years, seizing millions of dollars in cryptocurrencies from tax evaders. In August 2023, the South Korean city of Cheongju reiterated its plan to begin confiscating cryptocurrency from local tax defaulters.
Previously, it was reported that the South Korean government had postponed the imposition of a 20% cryptocurrency income tax in July 2023. The tax was originally scheduled to take effect in early 2023 but has not been postponed to 2025.
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