According to the Korea Times, the National Tax Service (NTS) of South Korea has announced the initiation of preparatory work for building a virtual asset transaction tracking system to support the government’s expansionary fiscal policy and increased revenue needs. The system aims to implement systematic tax administration on cryptocurrency investment gains, with an estimated project cost of approximately KRW 3 billion (about USD 2.02 million). The tender has been publicly posted on Korea’s Public Procurement Service e-bidding platform, and the winning bidder will be finalized and sign the contract within this month. According to the plan, system design will commence in April, enter a trial operation phase in November, and officially launch between November and December. The NTS stated that the system is expected to begin collecting individual virtual asset transaction data starting in 2027. Under South Korea’s current plan, starting January next year, virtual asset gains exceeding KRW 2.5 million will be subject to a comprehensive tax rate of 22% (comprising 20% income tax and 2% local income tax).
South Korea to Launch Virtual Asset Tax Tracking System in 2027
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Summary
South Korea is set to launch a virtual asset tax tracking system by 2027, as the National Tax Service moves to monitor digital asset market transactions for tax compliance. The project, with a budget of 300 million KRW ($2.02 million), will begin collecting data in 2027. Investors with gains exceeding 2.5 million KRW will be subject to a 22% tax rate starting next year. The initiative reflects increasing regulatory attention on altcoins and broader cryptocurrency activity.
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