South Korea’s Tokenized Stocks May Be Taxed as Early as the Second Half of This Year, Regulators Classify Them as Securities Rather Than Virtual Assets

Odaily News: The South Korean Ministry of Economy and Finance stated that tokenized stocks are considered securities, not virtual assets. If the Financial Services Commission confirms their securities nature, taxation can be immediately applied under the current Capital Markets Act, possibly taking effect as early as the second half of this year.

An official from the Ministry of Economy and Finance pointed out that although tokenized stocks take the form of virtual assets, they are essentially closer to securities. The Financial Services Commission previously clarified in its token securities guidelines that token securities are 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 exemptions until the virtual asset taxation system is implemented next year. The Ministry of Economy and Finance emphasized its stance on taxation and is establishing an information exchange system with overseas tax authorities, including the U.S. Internal Revenue Service. (bloomingbit)