South Korea to Impose 11% Tax on Overseas US Stock Perpetual Contract Earnings Starting Next Year

The South Korean Ministry of Finance has decided to classify perpetual contracts linked to US stocks as overseas stock derivatives. Starting next year, an 11% tax will be levied on earnings obtained from investing in such products through overseas cryptocurrency exchanges, with taxation applied after deducting a basic exemption of 2.5 million KRW from annual earnings. US stock perpetual contracts are traded on overseas exchanges like Binance and track US stocks such as Nvidia, Apple, and Tesla. Since the Financial Services Commission of South Korea has not permitted perpetual contracts, South Korean investors can only participate through overseas exchanges. From January to August this year, the trading volume of such products across 19 global exchanges was approximately 1 trillion USD. The South Korean government plans to monitor investors' trading records on overseas exchanges and tax them accordingly.

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