Korean tokenized stocks may be taxed as early as the second half of this year, as regulators classify them as securities rather than virtual assets.

Odaily Planet Daily News The Korean Ministry of Economy and Finance stated that tokenized stocks are considered securities rather than virtual assets. If the Financial Services Commission confirms their securities nature, taxes can be imposed immediately under the current Capital Markets Act, potentially as early as the second half of this year.

An official from the Korean Ministry of Economy and Finance pointed out that while tokenized stocks take the form of virtual assets, their substance is much closer to securities. The Financial Services Commission has previously clarified in its token securities guidelines that tokenized securities are securities issued in the form of digital assets and fall under the jurisdiction of the Capital Markets Act. Currently, the market generally regards tokenized stocks as virtual assets, which are non-taxable assets and can enjoy tax exemption until the implementation of virtual asset taxation next year. The Ministry of Economy and Finance emphasizes its position on taxation and is establishing an information exchange system with overseas tax authorities such as the U.S. Internal Revenue Service. (bloomingbit)