Approximately 5.4 billion yen additional tax on South Korean game company WeMade, focus on tax treatment of virtual currency WEMIX

10 months ago 61

Additional tax imposed on Korean game company WeMade

It has been revealed that South Korea’s National Tax Service has imposed a surcharge of approximately 50 billion won (approximately 5.4 billion yen) on WeMade, a game development company that operates businesses related to virtual currency. According to a report by Korean media Yonhap on the 3rd, the additional fines against WeMade and its subsidiary Wemade Tree totaled 53.69 billion won.

This surcharge is based on an integrated survey of corporate taxes conducted by the Korean National Tax Service from 2019 to 2022. The deadline for payment is set on the 29th of next month, and the additional amount to be collected is equivalent to 10.05% of the company’s equity. This suggests that WeMade will be able to cover the additional fines from its own capital, but as of January 4, 2024, WeMade’s stock price (112040: KRX) has fallen 9% since the beginning of the year. ing.

WeMade stock price Source: Trading view

connection:Cabinet approved the FY2018 tax reform outline, and corporate crypto assets will no longer be subject to end-of-period mark-to-market valuation tax, subject to certain conditions such as transfer restrictions.

Tax treatment of virtual currency WEMIX

Wemade Tree was established by WeMade in January 2018 to expand into the blockchain business, and was merged into the company’s headquarters in February 2022. The National Tax Agency has decided to impose an additional fine after conducting a tax investigation on the virtual currency WEMIX, which was issued and used by WeMade and Wemade Tree.

WeMade officials explained that the additional fine was due to accounting and tax treatment related to the use of WEMIX from 2019 to 2022. WeMade said it would not object to the order, but said it believed “clearer” taxation for crypto companies would help the industry.

The virtual currency WEMIX is the native coin of the “mega-ecosystem” of the Web 3.0 platform and will be used for gas fees and other payment methods. According to CoinMarketCap, major WEMIX exchanges include Bithumb and Gate.io. As of the 4th, the market capitalization is 950 million dollars (140 billion yen), ranking 75th in the market.