70% of South Korean Reported Foreign Assets Are Crypto- Here’s More

Cryptocurrencies, particularly Bitcoin, have emerged as the predominant category within South Korea’s disclosed overseas assets, according to the latest report published by the nation’s tax authority, the National Tax Service (NTS).

In an official announcement on September 20, the NTS disclosed that 1,432 individuals and corporations have reported holding overseas accounts denominated in cryptocurrency this year.

The aggregate value of these cryptocurrency assets amounted to a staggering 130.8 trillion South Korean won, equivalent to $98 million. Remarkably, this constitutes more than 70% of the combined value of all declared overseas assets.

The report further delineated the breakdown of reported overseas assets. A total of 5,419 entities, spanning individuals and companies, reported overseas financial accounts. Their combined holdings encompassed 186.4 trillion won, equivalent to $140 million. These assets include cryptocurrencies, stocks, as well as deposits and savings.

While cryptocurrencies reigned supreme concerning the overall value of reported overseas assets, deposits and savings accounts stood out as the most commonly reported category.

A total of 2,952 individuals and entities acknowledged holding 22.9 trillion won, or $17 million, in deposits and savings accounts. Another 1,590 entities confirmed possessing stocks valued at 23.4 trillion won, approximately $17.6 million.

The NTS underscored its intention to conduct rigorous examinations of individuals and entities that fail to report their overseas financial accounts.

The tax regulator has been actively compiling data related to cross-border financial transactions, foreign exchange activities, and notifications from relevant agencies. It also indicated that it would impose penalties on individuals or entities violating the reporting requirements. The NTS 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.”

National Tax Service

South Korea, a crypto-friendly nation, has been diligently working on refining its cryptocurrency tax regulations in recent years. Notably, the country has seized substantial amounts of cryptocurrency from tax evaders.

In August 2023, Cheongju in South Korea reiterated its commitment to confiscating cryptocurrency assets from local tax delinquents. Previously, the South Korean government decided to postpone the implementation of a 20% tax on cryptocurrency gains, initially scheduled for early 2023, to 2025.

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