Starting next year, South Korea will impose an 11% tax on gains from US stock perpetual contracts on overseas exchanges

Odaily: South Korea's Ministry of Economy and Finance has decided to classify perpetual contracts linked to US stocks as overseas stock derivatives and include them within the scope of capital gains tax. Starting next year, gains that South Korean investors earn from investing in such products through overseas crypto exchanges will be taxed at a rate of 11%, after an annual basic deduction of 2.5 million KRW, which is half the 22% tax rate on overseas spot stocks.

US stock perpetual contracts are traded through overseas crypto exchanges such as Binance and track US stocks including Nvidia, Apple, and Tesla. Because South Korea's Financial Services Commission has not permitted perpetual contracts, South Korean investors can only participate through overseas exchanges. Data shows that from January to August this year, trading volume of such products on 19 global exchanges was approximately $1 trillion. The South Korean government plans to obtain records of investors' relevant transactions on overseas exchanges and levy taxes accordingly.