Record number of South Koreans reaped handsome profits from overseas stocks

미국 증권거래소 나스닥 [사진=로이터연합뉴스]

SEOUL, January 22 (AJP) - South Koreans who reported taxes on profits from overseas stock investments topped 500,000 for the first time, tax data reveals.

According to data submitted by the National Tax Service to Park Sung-hoon of the main opposition People Power Party (PPP) and released on Thursday, some 523,709 people filed tax returns on profits earned in 2024, up from 207,231 a year earlier.

Those who invest in overseas stock markets and sell them for profits are required to pay a 22 percent tax here on gains exceeding 2.5 million won (US$1,700).

The increase was attributed to a bullish U.S. market that year, with the S&P 500 up 23.3 percent and the Nasdaq up 28.6 percent.

Another factor is the growing interest in overseas stock investment among retail investors seeking higher returns, as profitability improved sharply. Total reported capital gains in 2024 reached 14.42 trillion won, up 303.1 percent from 3.58 trillion won the previous year, with average gains per person around 28 million won.

U.S. stocks accounted for the largest share of their investment. According to the Korea Securities Depository, the value of U.S. stocks they held rose from US$44.2 billion in 2022 to $68 billion in 2023, $112.1 billion in 2024, and $163.6 billion by the end of last year.

To encourage them to return to the domestic market, the Ministry of Economy and Finance is mulling a temporary tax incentive for those who sell overseas stocks and reinvest their profits in domestic assets, under a scheme to be tabled at the National Assembly next month.
Park Ki-rock 기자 kirock@ajunews.com

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