South Korea's Tax Agency Clarifies Reporting Requirements for Overseas Crypto Accounts

According to Digital Asset, on August 28, the National Tax Service of Korea issued a new official interpretation (유권해석), clarifying that domestic residents must still fulfill their obligation to report overseas financial accounts, even if the overseas virtual asset exchange where they hold an account has declared bankruptcy. Previously, an applicant inquired whether reporting was still required for an account held at a foreign exchange that went bankrupt in November 2022; the National Tax Service provided a clear response. Under Article 53 of the Act on International Tax Adjustment, individuals whose overseas financial account balances exceeded 500 million KRW at any month-end during the year must file a report with the tax office by June of the following year, with virtual assets included in the reporting scope since 2023.