South Korea goes crazy for trading coins! Cryptocurrency assets declared reach 130.8 trillion Korean won, accounting for 70% of overseas assets.

South Korea, known for its fervent cryptocurrency trading culture, how crazy has the nationwide enthusiasm for trading cryptocurrencies become? A look at the latest report from the National Tax Service of South Korea may give you some insight. Just how much in cryptocurrency assets were required to be reported for the first time this year?

South Korea's Crypto Asset Declaration Reaches 130.8 Trillion Korean Won

According to a report by South Korean media outlet The Korea Herald, a recent report released by the National Tax Service (NTS) of South Korea revealed that over two-thirds of the value of overseas accounts registered this year comes from crypto assets.

The total amount of foreign financial assets registered this year was 186.4 trillion Korean Won, with an astonishing 130.8 trillion Korean Won, approximately 98 billion USD, coming from crypto assets, accounting for around 70%.

Under South Korean tax regulations, residents or companies subject to taxation in South Korea are required to declare if the balance of their foreign financial accounts on the last day of any month in the previous year exceeds 500 million Korean Won, approximately 374,000 USD.

The report noted that with the amendment of relevant tax laws in 2021, crypto assets were required to be declared for the first time, leading to a historic high in the total amount of foreign account declarations, significantly surpassing the previous year's 64 trillion Korean Won.

90% Declared by Companies, Individuals Declaring Mostly Young Whales

Out of the 130.8 trillion Korean Won declared, 120.4 trillion Korean Won came from company declarations, with the majority stemming from the issuance of cryptocurrencies, declaring the overseas crypto assets held by companies.

The remaining 10.4 trillion Korean Won was declared in personal names, with a total of 1,359 individuals declaring, averaging 7.66 billion Korean Won, approximately 57.3 thousand USD, of crypto assets per person.

Furthermore, the data indicates that the majority of those declaring crypto assets are young individuals. Among those under 40 years old, the average crypto asset holdings per person were 10 billion Korean Won, representing 51.8% of the total declared crypto assets.

Aside from crypto assets, which account for 70%, the second-largest category in total registered foreign financial assets was stocks, making up 12.6% at 23.4 trillion Korean Won, followed by deposits and savings at 12.3% with 22.9 trillion Korean Won.

Based on this declaration report, the extent of South Koreans' interest in cryptocurrencies is truly remarkable compared to many other countries. Additionally, with certain thresholds for declaration, where balances below 500 million Korean Won in foreign financial accounts do not require reporting, the actual holdings of crypto assets by the South Korean population are likely significantly higher than the reported figures.