When Korean Residents Must Report Offshore Forex Accounts
The main report for Korean residents is the National Tax Service's overseas financial account report: if the combined balance of all your accounts with overseas financial firms, derivatives accounts included, exceeds ₩500 million on the last day of any month in the year, you report the accounts between 1 and 30 June the following year. Penalties start at 10% of the unreported amount. Foreign nationals who have lived in Korea for 5 years or less out of the past 10 are exempt. Bank transfers abroad are a separate matter under the Foreign Exchange Transactions Act.
Who this guide is for
This guide is for people who are tax residents of South Korea, Korean or foreign, and hold money with an offshore forex broker. Before anything else, note the legal background: the Korea Financial Investment Association says individuals must trade FX margin through a domestic investment broker, and that dealing directly with an overseas financial investment firm is illegal under the Capital Markets Act (KOFIA). See is offshore forex trading legal? and our South Korea country page. This guide covers the reporting rules that apply to accounts you hold abroad.
The overseas financial account report
From the National Tax Service’s overseas financial account reporting page, read on 2 November 2026:
| Item | Rule |
|---|---|
| Who must report | Residents and domestic companies at the end of the year, unless exempt |
| Which accounts | Accounts opened with overseas financial companies for financial or virtual-asset transactions, including bank, securities and derivatives accounts and accounts with virtual-asset service providers |
| Threshold | Combined balance of all overseas accounts exceeds ₩500 million on the last day of any month of the year |
| Assets counted | Cash, shares, bonds, fund units, insurance, virtual assets and all other assets |
| Deadline | 1–30 June of the following year |
| How | To your local tax office, or electronically via Hometax or the Sontax app |
| What you report | Your identity, each account’s number and institution, the highest month-end balance, and joint or beneficial owners |
The legal basis is Articles 52–57 and 90 of the Adjustment of International Taxes Act.
Exemptions that matter for international readers
The NTS lists several exemptions. Two are directly relevant:
- Foreign residents whose combined periods of having an address or residence in Korea during the 10 years before the year-end total 5 years or less.
- Overseas Koreans whose combined residence in Korea during the year before the year-end totals 182 days or less.
From the 2025 holdings year, people treated as residents of a treaty partner country under a tax treaty are also exempt. If you’re unsure whether you count as a Korean resident at all, check with the NTS before the June deadline.
A worked example
Suppose you hold an offshore broker account and an account at an overseas crypto exchange (figures are illustrative):
| Month-end | Broker | Overseas exchange | Total |
|---|---|---|---|
| 31 March | ₩300m | ₩250m | ₩550m (over) |
| 30 June | ₩200m | ₩100m | ₩300m |
| 30 September | ₩400m | ₩50m | ₩450m |
The total exceeded ₩500 million at the end of March, so you must report the following June, giving each account’s highest month-end balance in the year. Note that the test is the sum on the same date, not each account separately.
Penalties
According to the NTS:
- Not reporting or under-reporting: a fine of 10% of the unreported amount for amounts up to ₩2 billion; ₩200 million plus 15% of the excess for ₩2–5 billion; above ₩5 billion, ₩650 million plus 20% of the excess, capped at ₩2 billion.
- Failing to explain the source of funds when asked: a further 10% fine on the unexplained amount.
- Over ₩5 billion unreported: your name and details may be published, and you may face criminal penalties (up to 2 years’ imprisonment or a fine of 13–20% of the unreported amount).
- Late or corrected reports made before a fine is imposed can reduce the fine by up to 90%, depending on timing.
Transfers abroad: a separate set of rules
Sending money abroad through a Korean bank falls under the Foreign Exchange Transactions Act. The bank may ask for the purpose and supporting documents, and depending on the amount and purpose a declaration may be required. KOFIA describes cases in which FX margin trading outside domestic brokers breached the Capital Markets Act and foreign exchange regulations. Limits and documents change, so ask your designated foreign exchange bank directly. Funding routes are compared in funding a forex account in Korean won.
This isn’t your tax return
The account report tells the NTS what you hold. Tax on trading profit is separate; see the forex tax guide. Keep each broker’s annual statements and month-end balances; you’ll need the balances for this report and the trading results for tax.
This guide explains the general rules only. For your own situation, contact the National Tax Service or a licensed tax adviser in Korea.
Related
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- bitwallet for Forex Deposits and Withdrawals: How It Works
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- Forex Withdrawal Problems: Causes and Fixes
- Why Brokers Reject Withdrawals and How to Avoid It
- Forex Trading Tax: What You Owe by Country
- Japan's ¥200,000 Rule for Offshore Forex Profits Explained
- Offshore Forex Losses in Japan: Carry-Forward and Offset Rules
- Deductible Expenses for Offshore Forex Traders in Japan
- Funding a Forex Account by Credit Card: What to Know
- Do Offshore Brokers Ask Japanese Clients for a My Number?
- Funding a Forex Account in Thai Baht: PromptPay and Thai Banks
- Funding a Forex Account in Ringgit: FPX, DuitNow and Local Banks
- Funding Forex in Indonesian Rupiah: Banks, QRIS and E-wallets
- Forex Glossary
Frequently asked questions
Is an offshore forex broker account an 'overseas financial account'?
The NTS includes accounts opened with overseas financial companies for financial transactions, and names securities accounts and derivatives accounts. An offshore broker account is very likely to fall within that; if your balances approach the threshold, confirm with your tax office.
Is the ₩500 million per account?
No. It's the total of all your overseas financial accounts on the same month-end date. If the total exceeds ₩500 million on any month-end in the year, you must report.
I'm a foreigner living in Korea. Do I need to report?
Not if you meet the NTS exemption: foreign residents whose combined periods of address or residence in Korea in the 10 years before the year-end total 5 years or less are exempt. Other residents must report if they cross the threshold.
What happens if I don't report?
A fine of 10% of the unreported amount for amounts up to ₩2 billion, rising in tiers to a cap of ₩2 billion. Above ₩5 billion unreported, the NTS may publish your name and you may face criminal penalties.
Is this the same as paying tax on my profit?
No. The account report tells the NTS what you hold; tax on trading profit is a separate obligation.
