How to Avoid Capital Gains Tax on U.S. Stocks

The U.S. stock market has risen a lot this year, so many people are expected to owe capital gains tax.
As the year draws to a close, this is likely to become a hot topic, so let's take a look at capital gains tax on overseas stocks.
For reference, gains from selling domestic listed stocks are not subject to capital gains tax for minority shareholders, excluding major shareholders (a stake of 1% or more, or a market value of 5 billion won or more).
However, U.S. stocks are different. If you make a profit, you have to pay tax.
If you don't pay, there are penalties.
So refer to the following to make sure you avoid any penalties from unpaid taxes.

How is the tax calculated?
Excluding trading costs, you add up your gains and losses, subtract 2,500,000 won from the net profit, and pay 22% of the remainder.
If you earned 5,000,000 won, you pay 2,500,000 won.
This is calculated by combining all of your brokerage accounts.

When is the tax paid?
Profits from January to December of the previous year are paid from May 1 to May 31 of the following year.

How do I pay?
Each brokerage firm offers a service that files U.S. stock taxes on your behalf.
It is provided free of charge, so you can use it to pay.
Is there a way to save on taxes?
You can save on taxes through gifting.
Gifts can be made to a spouse, lineal ascendants, lineal descendants, or other relatives, but gifting to a spouse is the most effective.
The spousal gift deduction allows a deduction of up to 600 million won in total over 10 years, based on Korean won.

Let's look at an example.
Suppose you have a profit of 50 million won when selling U.S. stocks.
Then you would have to deduct 2,500,000 won from 50 million won and pay 22%, which comes to 10,450,000 won.
But if you don't sell and instead gift the stocks to your spouse, there is no tax at the time of the gift.
And when your spouse later sells the stocks, if the price hasn't risen since the gift, there is no profit from the spouse's standpoint, so there is no tax.
Deduction limits vary depending on the recipient, so please check them separately.