Report Overseas Financial Accounts Exceeding 500 Million Won in June... 'Penalty' Bomb if Not Reported

[Financial News] A notice for reporting account information will be sent to about 14,000 people who may have overseas financial accounts exceeding 500 million won. If the unreported or underreported amount exceeds 5 billion won, it may result in criminal penalties and public disclosure of the list.
On the 29th, the National Tax Service announced that it plans to send reporting notices via mobile and mail to taxpayers who may have overseas financial accounts exceeding 500 million won.
The overseas financial account reporting system requires reporting if the total balance of all overseas financial accounts held by residents or domestic corporations (cash, stocks, bonds, funds, insurance, derivatives, virtual assets, etc.) exceeds 500 million won on any day at the end of each month of the year. It has been implemented since 2011 to preemptively curb illegal overseas capital outflows and offshore income tax evasion.
The balance of overseas financial accounts at the end of each month is calculated by converting it into Korean won. Virtual assets must also verify the final price at the end of each month at overseas virtual asset exchanges to calculate the balance. If the total balance of overseas financial accounts exceeds 500 million won for several months, the month with the largest total balance becomes the reporting reference date.
A 10% penalty is imposed for non-reporting or underreporting. If it exceeds 5 billion won, criminal penalties may also be imposed. In addition, personal information may be disclosed after review by the National Tax Information Committee.
A system is also in operation that provides rewards of up to 2 billion won for important information reports on non-reporters of overseas financial accounts.







mirror@fnnews.com Kim Kyuseong Reporter