South Korean taxpayers held 131 trillion won (approx. $98.5 billion) worth of cryptocurrencies in foreign accounts this year, according to a report by the Yonhap news agency.
In South Korea, nationals and companies with more than 500 million won ($377,000) in foreign financial accounts for any type of asset, including crypto, are required to report it to authorities in June. Failure to do this attracts a monetary fine of up to 20% of their undeclared amount.
The Yonhap report, which cited statements from South Korea’s National Tax Service (NTS), stated that over 1,432 nationals and entities reported their crypto assets in overseas accounts this year.
Fresh High
Yonhap revealed that all overseas assets reported in 2023, including cash and securities, climbed to 186.4 trillion won ($138.9 billion), marking a new high compared to last year’s 64 trillion won ($47.7 billion).
In terms of country, the United States leads the pack for overseas accounts held by South Korean entities, followed by Japan and Britain. The US also tops the chart for foreign accounts held by nationals, followed by Singapore and Hong Kong.
It is important to note that this breakdown by destination did not include digital asset holdings, as it is hard to accurately track the geographical location of digital assets held on crypto exchanges.
Tough Regulatory Stance
South Korea is known for its stringent regulatory approach to the crypto sector in the country, especially in taxation. While the government announced last year that it had suspended a 20% on capital gains until 2025, it has continued to heavily crackdown on crypto users in the country.
As reported by Coinfomania last year, South Korean tax authorities have seized more than $183.5 million worth of cryptocurrencies since 2021 due to tax arrears. According to the report, the estimated amount includes $124.4 million confiscated for non-payment of national tax, and $58.9 million seized for local tax arrears.
