7,484 People Held Overseas Accounts Exceeding 500 Million Won Last Year... Up 626 From Previous Year

National Tax Service Announces Results of Overseas Financial Account and Trust Declarations

107.1 Trillion Won in Overseas Financial Accounts, 3.8 Trillion Won in Overseas Trusts Reported

Overseas Stocks Reach Record High of 61.3 Trillion Wo

Last year, the number of individuals holding overseas accounts exceeding 500 million won reached 7,484, a year-on-year increase of over 620 people. Individuals led this upward trend, with overseas stock account reporters increasing by 442.

On September 2, the National Tax Service announced the results of the overseas financial account reporting initiative, which was introduced to block offshore tax evasion and legitimize undisclosed overseas assets.

Residents and domestic corporations are required to report any overseas financial account with a balance exceeding 500 million won on any day at the end of a month during the relevant year. For accounts exceeding 500 million won at the end of each month from January to December of the previous year, individuals and corporations must file their report by the end of June of this year.

This year, the number of overseas financial account reporters came to 7,484, up 9.1% from the previous year, and the total reported amount reached 107.1 trillion won, marking a 13.3% year-on-year increase. A National Tax Service official stated, "Of this, stock holdings accounted for 61.3 trillion won, making up 57.2% of the total," adding, "This is mainly attributable to increased stock listings and valuations stemming from expanded overseas operations of Korean companies."

The increase in the number of overseas financial account filers was led by individuals. A total of 6,663 individuals reported 27.4 trillion won, compared to 6,023 individuals and 26.7 trillion won reported the previous year—an increase of 640 people (10.6% year-on-year), and 700 billion won (2.6%) in reported amounts. For corporations, 821 reported this year with a total amount of 79.7 trillion won, compared to 835 corporations and 67.8 trillion won last year, indicating a decrease of 14 corporations (-1.7%) but an increase of 11.9 trillion won (17.6%) in reported sums.

The most commonly reported type of overseas financial account by number of reporters was savings and deposit accounts (3,487 people), followed by stocks (2,434 people), and virtual assets (2,362 people). By reported amount, stocks ranked first (61.3 trillion won), followed by savings and deposits (23.6 trillion won), and virtual assets (10.5 trillion won).

This year, 2,434 people reported a total of 61.3 trillion won in overseas stock accounts. This represents an increase of 442 people and 13.2 trillion won compared to 2025 (1,992 people, 48.1 trillion won). For virtual asset accounts, which have been included as reportable from the 2023 reporting year, 2,362 people reported a total of 10.5 trillion won this year. This is an increase of 42 people compared to 2025 (2,320 people, 11.1 trillion won), but the total reported amount decreased by 600 billion won. The National Tax Service analyzed that the drop in the reported amount of virtual asset accounts was due to the overall decline in the value of such assets.

Overseas trusts were subject to mandatory reporting for the first time this year, and due to information sessions and prior notification, 1,286 individuals reported a total of 3.8 trillion won (1,591 cases). This allowed for the legitimization of trust assets that had previously not been detected for taxation. Among corporations, 31 (2.4%) out of the total 1,286 reporters were corporations; however, as corporations such as asset management firms and shipping companies tend to hold large-scale funds (bonds, funds, etc.) in trust form, they accounted for 3.1 trillion won, or 81% of the total reported amount. Among individuals, insurance accounted for the largest portion by number of reported cases (75.3% of the total), while stocks and real estate made up the highest portion by amount (53.8%).

The National Tax Service thoroughly verifies cases suspected of underreporting or non-reporting overseas assets by utilizing international information exchange, foreign exchange transaction records, and various other data sources. If a breach of reporting obligation is discovered, a penalty of 10% of the unreported or underreported amount is imposed, along with back taxes. In particular, underreported or undisclosed amounts exceeding 5 billion won in overseas financial accounts may lead to criminal prosecution and the offender’s information being made public.

Even if the statutory reporting deadline has passed, taxpayers who faithfully submit a corrected or late report may be eligible for penalty reduction. For overseas financial accounts, submitting a "corrected report or late report" after the deadline (June 30, 2026) allows for a penalty reduction of 30% to 90% for unreported or underreported amounts.

An official from the National Tax Service stated, "From 2027, the National Tax Service will begin automatic international information exchanges on crypto-asset transactions and will use transaction data received from treaty partner countries to verify resident and domestic corporate virtual asset transactions. In addition, given this year's proposed tax law amendments include raising the non-reporting penalty for overseas trusts (from 100 million to 1 billion won) and establishing a reward system for overseas trust reporting, we strongly encourage anyone who has omitted an overseas asset report to promptly file a corrected or late report."

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