According to documents released by the National Tax Service, South Koreans hold a total of 131 trillion won ($99 billion) worth of virtual assets outside the country. This amount represents approximately 70% of all reported overseas assets. The tax service revealed that 1,432 individuals and corporations reported holding crypto accounts abroad. Considering that South Korea has a population of just under 52 million, as per World Bank data, this indicates a significant involvement in the crypto market.
To address this growing trend, South Korea implemented a mandatory reporting requirement this year. Yonhap News reported that the tax law mandates nationals to declare any accounts abroad exceeding 500 million won by June. This move reflects the country’s efforts to regulate and monitor the crypto industry.
The taxation of virtual assets has become a global concern, and South Korea is no exception. The country is planning to introduce taxes on crypto earnings by 2025. Additionally, South Korea has also expressed the possibility of taxing airdrops, further indicating its intention to establish a comprehensive regulatory framework for the crypto sector.
As governments worldwide grapple with the taxation of virtual assets, South Korea’s proactive approach demonstrates its commitment to ensuring transparency and compliance within the crypto market. By implementing reporting requirements and planning future tax regulations, the country aims to strike a balance between fostering innovation and safeguarding its financial system.