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

South Korea’s Ministry of Economy and Finance explicitly stated that tokenized stocks (“token securities”) will be classified as securities—not virtual assets—and are therefore subject to immediate taxation under the existing Capital Markets Act. If the Financial Services Commission formally confirms their status as securities in its token securities guidelines, scheduled for release in July, along with related subordinate regulatory amendments, taxation could begin 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 also fall within the taxable domain. 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).