In recent years, crypto assets such as Bitcoin and Ether have witnessed increased adoption in various countries worldwide. In a testament to this growing trend, South Korea’s tax organization disclosed that cryptocurrencies accounted for the largest proportion of taxpayers’ assets overseas.
This comes after the East Asian country tweaked its tax policy, mandating citizens to declare their overseas assets yearly. According to local news sources, the policy demands that Korean nationals who own 500 million won in assets, including cryptocurrencies, must report their holdings in offshore accounts or exchanges.
Crypto Assets Make Up 70% Of South Koreans’ Overseas Accounts
In a report published on September 20, South Korea’s National Tax Service (NTS) revealed that 5,419 individuals and organizations declared their overseas financial accounts in 2023. According to the official data, 1,432 entities from this total figure reported cryptocurrencies in their offshore holdings.
This NTS announcement revealed that South Koreans declared a total of 130.8 trillion won (equivalent to roughly $98 billion) in overseas crypto holdings. This figure represents more than 70% of the total amount in reported overseas assets.
While cryptocurrencies were the largest offshore assets in terms of value, deposit and savings accounts were the most frequently reported assets. A total of 2,952 entities declared 22.9 trillion won (approximately $17 billion) in such accounts.
In total, South Korean taxpayers reported 186.4 trillion won ($140 billion) as their overseas assets. This figure includes not only crypto assets and deposit/savings accounts but also stocks worth 23.4 trillion won ($17.6 billion).
In the announcement, the National Tax Service asserted that it plans to investigate entities that fail to declare their overseas financial accounts. The tax authority claims it has been gathering cross-border information exchange data, foreign exchange data, and other related information, with plans to impose fines on those violating the rules.
South Korea’s NTS said:
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Author: Opeyemi Sule
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