South Korea’s Ministry of Economy and Finance: Tokenized Stocks Are Securities, Taxation to Begin as Early as Second Half of This Year

TechFlow News: On June 12, South Korea’s Ministry of Economy and Finance explicitly classified tokenized stocks (“token securities”) as securities—not virtual assets—making them immediately subject to taxation under the existing Capital Markets Act. If the Financial Services Commission formally confirms their status as securities in its token securities guidelines and related subordinate regulation amendments scheduled for release in July, taxation could commence as early as the second half of 2026. Notably, the Capital Markets Act’s tax scope extends beyond domestic transactions: over-the-counter (OTC) trades conducted on overseas platforms are also subject to taxation. The Ministry of Economy and Finance and the National Tax Service have already begun establishing information exchange mechanisms with overseas tax authorities, including the U.S. Internal Revenue Service (IRS).