Business · Companies · 19 hrs ago
South Korean investors seek tax deferral if Tesla and SpaceX merge
South Korean investors are concerned about taxes if Tesla and SpaceX merge.
Under current rules, exchanging shares in a foreign-company merger can count as a sale for tax purposes, even when investors receive no cash.
That could leave Tesla shareholders owing tax on paper gains when they receive shares in a combined company.
South Korea's tax rate on overseas share gains is 22% above an annual 2.5 million won allowance.
Investors have petitioned for tax to be delayed until they sell the new shares, as it can be for some qualifying mergers between South Korean companies.
The petition had gathered more than 27,000 signatures in one account; it needs 50,000 within 30 days to be sent to a parliamentary committee for review.
A merger has not been confirmed, and any deal would still face board, shareholder and regulatory steps.
South Korean investors are asking lawmakers to defer capital gains tax on foreign shares received in a merger until they sell them.
The request follows concerns that a Tesla-SpaceX merger could trigger tax even if Tesla shareholders receive shares rather than cash.
A petition seeking a tax-deferral system was posted on South Korea’s National Assembly petition site on October 22.
By November 4, it had received about 27,150 signatures; 50,000 signatures are needed for referral to a relevant committee for review.
The merger remains unconfirmed, and its terms and transaction structure have not been decided.
- Who
- South Korean investors who hold foreign shares, including Tesla shareholders.
- What
- They are asking lawmakers to defer capital gains tax on shares exchanged in foreign-company mergers until investors sell the replacement shares.
- When
- A petition was posted on October 22, 2026; by November 4 it had about 27,150 signatures.
- Where
- South Korea, through the National Assembly’s public petition site.
- Why
- Under the current rules described in the articles, a share exchange in a foreign-company merger may count as a taxable disposal even when investors receive no cash.
This story does not have two clearly opposing sides.
A petition seeking tax deferral for foreign-share reorganizations was posted on the National Assembly petition site.
The Korea Economic Daily reported that South Korean investors held Tesla shares worth $23.11 billion as of this date.
The Korea Economic Daily reported that the petition had passed 25,000 signatures.
Yonhap reported that the petition had about 27,150 signatures.
- Petition posted
- October 22, 2026
- Signatures reported
- About 27,150 as of November 4
- Referral threshold
- 50,000 signatures
- Tax rate
- 22% on foreign-share gains above the annual basic deduction
- Annual basic deduction
- 2.5 million won
- Tesla holdings
- About $23.3 billion held by South Korean investors as of November 2, according to Yonhap
3 sources
What people are saying
The merger of the two companies is gradually becoming the market consensus
If the merger structure is confirmed, we will know, but under the current law there is little basis to treat it differently from Rocket Lab
Unless the system changes, investors have no choice but to prepare