Korea tax guide
Foreign Financial Account Reporting in Korea
Income Tax
Who this guide is for
- Foreign residents with overseas bank or brokerage accounts
- Expats holding crypto through overseas providers
- Long-term foreign residents approaching the five-year exemption limit
- People who crossed the KRW 500 million month-end threshold
Quick Answer
A Korean resident who is not exempt generally must review the foreign financial account report if the combined balance of reportable overseas accounts exceeds KRW 500 million on any month-end during the year. The report is generally filed in June of the following year. A foreign resident whose total Korean domicile or residence is five years or less during the previous ten years is among the listed exemptions.
Key points
- The test uses the combined balance of reportable overseas accounts.
- Crossing KRW 500 million on any month-end can trigger review.
- Cash, securities, insurance, derivatives, and virtual assets may be included.
- Some foreign residents and treaty residents are exempt under specific tests.
- The report is separate from income tax reporting.
Step-by-step explanation
Run the test in the right order
First determine whether you were a Korean resident at the end of the reporting year. Next test every applicable exemption, including the residence-history rule for foreign residents. Then inventory all accounts opened with overseas financial companies or virtual-asset providers.
Use every month-end
Convert and combine the balances for all reportable accounts at each month-end. The test is not limited to the year-end balance. If the total exceeded KRW 500 million on any month-end, identify the highest relevant month-end and prepare the required account details.
Keep income reporting separate
The account report discloses specified foreign account information. It does not replace reporting interest, dividends, gains, business income, or other taxable income. A person can have an account-reporting obligation without current taxable income from the account, or taxable income without crossing the account threshold.
Correct errors early
The NTS describes significant penalties for non-reporting and under-reporting, with additional consequences for large amounts. Voluntary amended or late reporting may reduce penalties depending on timing, so obtain advice promptly if a past report was missed.
Documents you may need
- Monthly statements for every overseas account
- Month-end exchange rates and valuations
- Account ownership and joint-holder details
- Crypto exchange or custody statements
- Korean residence history
- Prior foreign account reports
- Treaty residence evidence if relevant
Common mistakes
- Checking only the December 31 balance
- Looking at each account separately instead of the combined total
- Ignoring dormant, joint, or crypto accounts
- Confusing an account report with an income tax return
- Assuming every foreign national is automatically exempt
When should you ask a tax professional?
Ask a qualified tax professional if you have income from several countries, business income, unclear tax residency, treaty questions, missing documents, late filing concerns, or a visa situation that depends on tax records. This site explains general patterns only and cannot review your personal facts.
FAQ
What is the Korean foreign account threshold?
The NTS states that the combined balance must be reviewed when it exceeds KRW 500 million on any month-end during the reporting year.
When is the report filed?
The regular filing period is June 1 through June 30 of the following year.
Are new foreign residents exempt?
A foreign resident whose total period of Korean domicile or residence is five years or less during the previous ten years is listed among the exemptions, but the exact history must be calculated.
Are overseas crypto accounts included?
They can be. The NTS includes virtual-asset accounts and virtual assets in the scope of the foreign financial account system.
Official Sources to Verify
Tax rules and filing procedures in Korea may change depending on your visa status, income type, tax residency, and the tax year. Before making a tax decision, always verify your situation with official sources or a qualified professional.