According to the latest report from South Korea's tax agency, cryptocurrencies, such as Bitcoin, account for the largest share of overseas assets held by South Korean individuals and companies.
The National Tax Service (NTS) of South Korea made an official announcement on September 20, revealing that 1,432 individuals and companies had reported their overseas cryptocurrency accounts this year.
In total, the reported value of cryptocurrencies amounted to 130.8 trillion won, which is approximately $98 million. This figure represents over 70% of the total value of all reported overseas assets.
Official data indicates that a total of 5,419 entities reported their overseas financial accounts, which included assets like cryptocurrencies, stocks, deposits, and savings. These entities collectively held assets worth 186.4 trillion won, equivalent to around $140 million. While cryptocurrencies made up the largest portion of reported overseas assets in terms of value, deposits and savings accounts were the most commonly reported assets, with 2,952 individuals and companies disclosing holdings worth 22.9 trillion won ($17 million). Additionally, 1,590 entities reported owning shares valued at 23.4 trillion won ( $17.6 million).
The NTS has stated that it plans to rigorously scrutinize individuals and entities that fail to report their overseas financial accounts. The tax agency has been compiling data related to cross-border information exchanges, foreign exchange transactions, and notifications from relevant agencies. Those found in violation of reporting regulations will be subject to fines.
The NTS highlighted that tax authorities worldwide, including the IRS, are working on exchanging information under Exchange of Information Reporting Regulations to address potential risks related to virtual assets.
South Korea, known for its relatively crypto-friendly environment, has been increasingly vigilant in enforcing cryptocurrency tax regulations. In recent years, the country has confiscated millions of dollars' worth of cryptocurrencies from tax evaders. Furthermore, the city of Cheongju in South Korea announced plans to start confiscating cryptocurrencies from local taxpayers who default on their taxes in August 2023.
Notably, the South Korean government had initially planned to introduce a 20% tax on cryptocurrency gains in early 2023, but this tax was postponed to 2025, as reported previously.
