South Korea tax agency forms digital asset unit ahead of 2027 crypto tax

South Korea’s National Tax Service has created a Digital Asset General Division as the country moves toward taxing virtual assets from Jan. 1, 2027, while the government broadens its digital-asset agenda and increasingly treats the sector as part of its national economic development strategy. The new tax unit, led by Lee Soon-yong from June 30, sits within the Individual Taxation Bureau and has taken over duties previously handled by the Income Tax Division. Three internal teams began operations this month, and the office is the first central government department in South Korea to carry “Digital Asset” in its name. Its remit includes planning the virtual-asset tax regime, refining the asset framework, building reporting and management systems, and handling pending sector issues. Under the current Income Tax Act, income from the transfer or lending of virtual assets will be treated as miscellaneous income from January 2027. Annual gains above 2.5 million won will face a combined 22% tax, including national and local income taxes. The Finance Ministry has said the implementation will proceed as scheduled, while tax authorities prepare guidelines covering digital-asset transactions, staking, lending and other taxable crypto activities. The tax preparations are unfolding alongside a wider policy shift. South Korea is advancing the National Asset Basic Act to recognize emerging asset classes such as cryptocurrencies in state asset management, has lifted long-standing restrictions on corporate crypto investments under regulatory oversight, and is preparing legislation to allow tokenized securities with blockchain networks recognized as securities registries from 2027. Policymakers are also working toward the country’s first spot Bitcoin and Ethereum ETFs and discussing won-backed stablecoins, although the Financial Services Commission and the Bank of Korea are still debating the framework for stablecoin issuers.