The South Korean National Tax Service (NTS) has announced that taxpayers with overseas financial accounts exceeding 500 million KRW (approximately USD 370,000) at any point during 2024 must file a report by June 30, 2025. As of 2023, this requirement also includes digital assets such as cryptocurrencies, prompting increased attention from crypto holders.
Under this regulation, Korean residents and domestic corporations must report overseas accounts if their aggregate balance exceeds the threshold on any day of the month-end during the reporting year. Covered assets include bank deposits, stocks, bonds, insurance products, derivatives—and now, virtual assets like Bitcoin and Ethereum held in foreign exchanges or wallets.
The reporting window is open from June 1 to June 30, 2025, and submissions can be made electronically through the National Tax Service’s Hometax or SONTAX platforms. Those unable to file online may submit a report in person at their local tax office.
Failure to report or underreporting can result in significant penalties: up to 10% of the unreported amount, capped at 1 billion KRW (about USD 740,000). In severe cases—where undisclosed balances exceed 5 billion KRW—criminal charges and public disclosure of the offender’s identity may follow.
Certain individuals are exempt from this obligation, including foreign nationals who have resided in Korea for five years or less within the past decade, and overseas Koreans who lived in Korea for fewer than 183 days in the past year.
To aid compliance, the NTS plans to notify approximately 15,000 potentially affected taxpayers via mobile and mail alerts this month.
“Transparent reporting of overseas assets is essential to maintaining tax fairness,” the NTS stated. “We urge all eligible individuals to complete their filings before the deadline.”
