South Korean Crypto Holdings Account For Over 70% Of Reported Overseas Assets

Key Points:

• Crypto makes up over 70% of South Korea’s reported overseas assets, totaling 130.8 trillion KRW.
• Deposits and savings accounts lead in the number of reports, with 2,952 entities disclosing holdings worth 22.9 trillion KRW.
• This surge is due to virtual asset accounts being included in reporting, highlighting South Korea’s commitment to transparency and tax enforcement.

In a significant development, cryptocurrencies have emerged as the leading category of reported overseas assets in South Korea, according to the latest data released by the country’s tax authorities.

The South Korean National Tax Service (NTS) made an official announcement on September 20, revealing that a total of 1,432 individuals and corporations disclosed holdings in cryptocurrency in the current year.

The cumulative reported value of these cryptocurrency holdings stands at a staggering 130.8 trillion Korean won (KRW). This amount constitutes more than 70% of the overall value of all reported overseas assets.

The official figures further highlight that a total of 5,419 entities reported their financial assets held abroad, which included cryptocurrencies, stocks, deposits, and savings. These assets had a combined worth of 186.4 trillion KRW.

Although cryptocurrencies dominated in terms of reported asset value, deposits, and savings accounts took the lead when considering the number of reports. A total of 2,952 individuals and companies disclosed holdings in deposits and savings accounts, amounting to 22.9 trillion KRW. Additionally, 1,590 entities reported owning stocks with a total value of 23.4 trillion KRW.

This notable shift in asset reporting can be attributed to the inclusion of virtual asset accounts in the reporting requirements for the first time this year. The NTS intends to utilize international information exchange data to rigorously verify non-compliant reports and impose penalties, including fines, notifications, and potential criminal charges.

Post-reporting deadline, the NTS may offer up to a 90% reduction in fines for filers, especially concerning virtual asset transaction details, in alignment with international tax enforcement efforts. The surge in the number of reports and total asset values can be attributed to the enhanced reporting system and the fostering of a culture of transparent overseas financial account disclosures in South Korea.

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