Cryptocurrencies like Bitcoin (BTC) accounted for the largest share of South Korea’s reported overseas assets in the latest report by the country’s tax organization.
South Korea’s National Tax Service (NTS) issued an official announcement on Sept. 20, stating that 1,432 individuals and corporations reported overseas accounts in cryptocurrency this year.
The total reported amount in crypto was 130.8 trillion Korean won (KRW), or $98 million, which makes up more than 70% of the total amount in all reported overseas assets.
According to the official data, a total of 5,419 entities reported their overseas financial accounts, holding a total of 186.4 trillion KRW ($140 million) in assets like cryptocurrencies, stocks as well as deposits and savings.
While cryptocurrencies were the biggest reported overseas assets by the amount of reported assets, deposits and savings accounts were on top based on the number of reports, with 2,952 individuals and companies reporting holding 22.9 twillion KRW ($17 million). Another 1,590 entities reported holding stocks worth 23.4 trillion KRW ($17.6 million).
Related: South Korea plans to submit bill to freeze North’s crypto assets: Report
The NTS mentioned that the tax regulator is planning to heavily scrutinize those who fail to report overseas financial accounts. The authority has been compiling cross-border information exchange data, foreign exchange data and related agency notification data, the NTS noted, adding that it will enforce fines for those who violate the rules. The regulator stated:
“In order to respond to the risk of potential tax base erosion through virtual assets, tax authorities around the world, including the National Tax Service, are preparing to exchange information in accordance with the Information Exchange Reporting Regulations.”
A major crypto-friendly country, South Korea has been closely focused on cryptocurrency tax rules in recent years, confiscating millions of dollars in crypto from tax evaders. In August 2023, The South Korean city of Cheongju reiterated its plans to start confiscating cryptocurrency from local tax delinquents.
Previously, the South Korean government reportedly postponed the 20% tax crypto gains in July 2023. The tax was supposed to come into effect from early 2023 but has nobeen delayed to 2025.
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