27,000 Holders of Overseas Assets Over 500 Million Won... How Should Married Couples with Joint Accounts Report?

Report Overseas Assets by June 30

Starting This Year, Trusts Established Overseas Must Also Be Reported

Key Q&A on the Overseas Financial Account Reporting System

If the total balance of overseas financial accounts you held last year exceeded 500 million won on any single day as of the end of each month, you must report the relevant account information by June 30. Starting this year, you are required to report not only overseas financial accounts but also trusts established overseas.

Those obligated to report must declare all assets held through accounts opened with overseas financial institutions, including deposits, installment savings, stocks, bonds, beneficiary certificates, insurance, and virtual assets. Since 2023, you are also required to report overseas virtual asset accounts opened through overseas virtual asset service providers. For overseas trusts, the reporting obligation applies for the first time this year, so taxpayers who have established trusts overseas must ensure not to omit reporting information on such trusts.

Starting June 1, the National Tax Service has been sequentially sending notification letters via mobile or mail to 27,000 taxpayers who are likely to be subject to reporting overseas financial accounts or overseas trusts. After the reporting period has ended, the National Tax Service plans to conduct a rigorous verification process on suspected cases of unreported overseas financial accounts and overseas trusts based on the exchange of financial information between countries, data collected by other agencies, and on-site information.

The following are key questions and answers regarding the reporting system for overseas financial accounts.

▲A married couple jointly holds an overseas financial account with a balance of 600 million won, with each spouse having a 50% ownership share. If divided according to the ownership ratio, each person’s share (300 million won) would be below 500 million won. In this case, how should the report be made?

=For joint accounts, each joint account holder is considered to hold the full balance of the account. Therefore, regardless of the ownership ratio, all joint account holders must report the full 600 million won as their account balance. However, if one of the joint account holders reports the account information on behalf of the other and can confirm all account information held by the other joint account holder, the other joint account holder is exempt from the reporting obligation.

▲If I reported an overseas financial account in June 2025 and there was no change in the account balance throughout 2025, do I need to report the overseas financial account again in June 2026?

=Even if there is no change in the balance of the overseas financial account reported in 2025, you must file a new report in 2026 if the account still meets the criteria for mandatory reporting.

▲Are overseas financial accounts that were opened or closed during the year also subject to reporting?

=Even if a financial account was opened or closed last year, if there was any day as of the end of each month when the total balance of all held accounts exceeded 500 million won and you held the relevant account on the day with the highest total balance, it is subject to reporting.

▲If I hold more than 500 million won worth of overseas stocks through a domestic securities company, am I required to report this?

=If you hold more than 500 million won worth of overseas stocks through a domestic securities company, you are not required to report an overseas financial account.

▲What if I invest in stocks of domestic corporations listed on overseas stock markets or in depositary receipts through an overseas financial account?

=All listed stocks (including depositary receipts) held in an overseas financial account must be valued and reported, regardless of whether they are domestic or overseas stocks. Depositary receipts of domestic corporations held in an overseas financial account are also subject to reporting.

This content was produced with the assistance of AI translation services.