The earliest taxation on tokenized stocks in South Korea may be implemented in the second half of this year, as regulators classify them as securities rather than virtual assets.

Odaily Planet Daily News: South Korea's 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, taxation can be applied immediately under the current Capital Markets Act, potentially as early as the second half of this year.

An official from South Korea's Ministry of Economy and Finance pointed out that although tokenized stocks take the form of virtual assets, they are substantially closer to securities. The Financial Services Commission has previously clarified in its token securities guidelines that token 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, i.e., non-taxable assets, which are eligible for tax exemption until the implementation of virtual asset taxation next year. The Ministry of Economy and Finance emphasizes its stance on taxation and is establishing an information exchange system with overseas tax authorities, including the U.S. Internal Revenue Service (IRS). (bloomingbit)