Gifts of cryptocurrency declared for minors in South Korea increased significantly in 2025. Latest disclosed data shows that the total value of such gifts received by individuals aged 18 and under rose to 4.03 billion Korean won, approximately $2.8 million, a 2.7-fold increase from the previous year. The number of declared gifts during the same period increased from 53 to 103, nearly doubling.
Children aged 11 and under are growing faster.
The younger demographic showed higher growth rates. The number of cryptocurrency gifts received by children aged 11 and under increased from 28 in 2024 to 65, while the corresponding value rose from KRW 774 million to KRW 2.35 billion—approximately triple the amount.
Across all age groups, the National Tax Service of Korea recorded 423 cases of cryptocurrency inheritance and gifting in 2025, totaling KRW 45.86 billion—an increase of 2.4 times in case count and 3.4 times in amount compared to the previous year. Of the 360 transactions classified as gifts, nearly one-third involved minors.
This data was obtained by Democratic Party of Korea lawmaker Jeong Tae-ho from the National Tax Service and reported by local media News1 on September 9.
Exchanges to be included in tax investigations starting in 2027
As data rises, South Korea is preparing to expand the tax authority's investigative powers over crypto assets. Under the 2026 tax reform plan, virtual asset service providers such as Upbit and Bithumb will be included in the financial asset inquiry system for inheritance and gift taxes starting January 1, 2027.
Currently, the Korean National Tax Service can primarily inquire about relevant financial assets from banks, securities firms, and insurance companies. After the new arrangement takes effect, tax authorities will be able to directly obtain records from cryptocurrency service providers in inheritance or gift cases, extending information requests and investigative powers to virtual asset companies.
Officials from the Korean National Tax Service stated that the agency plans to implement more systematic monitoring and management of inheritance and gift taxes related to virtual assets. Previously, Korean media revealed that the National Tax Service is preparing to introduce commercial wallet tracking software to enhance its ability to identify on-chain transactions.
However, private wallets remain a regulatory challenge. Since assets are directly controlled by taxpayers, tax authorities still require more comprehensive information systems to track peer-to-peer transfers between wallets, offshore transactions, and holdings in private wallets.
Crypto income tax will also be implemented in 2027.
In addition to gifts and inheritances, South Korea will officially tax cryptocurrency gains starting in 2027. Under the current arrangement, personal annual virtual asset gains exceeding 2.5 million KRW will be taxed as "other income" from January 1, 2027, at a combined rate of 22%, comprising a 20% national tax and local income tax.
This tax is not limited to domestic exchange accounts. The South Korean government has previously confirmed that taxable cryptocurrency income obtained through private wallets and overseas exchanges is also subject to taxation. Tax authorities have also stated that the location of asset storage or custody method does not affect whether the income is taxable.
Under the current system, cryptocurrency gifts are already subject to Korea’s gift tax rules, not starting only in 2027. For major cryptocurrencies traded on designated virtual asset service providers, tax valuation typically uses the average daily price over the month before and after the gift date; for assets with low trading volume or those not listed on qualified platforms, valuation is based on the average price on the gift date.
South Korea also sets deduction limits for gifts between family members. Over a 10-year period, spouses may deduct up to 600 million KRW, adult children up to 50 million KRW, and minor children up to 20 million KRW. If the gift amount does not exceed the applicable deduction limit, gift tax is typically not incurred, but reporting and valuation are still required by law.
Additional information: As South Korea advances its implementation of the OECD’s Crypto-Asset Reporting Framework, tax authorities will gain further access to overseas cryptocurrency transaction data, and scrutiny of private wallets and cross-border transfers may continue to expand.