South Korea’s National Tax Service (NTS) has created a dedicated Digital Assets Management Division as it prepares to begin taxing digital assets from January 2027.
The new division will oversee virtual asset taxation, compliance systems, tax administration, and digital asset management. The agency has already appointed Lee Soon-yong to lead the unit and organized three teams to begin work.
The division will also take over crypto tax responsibilities previously handled by the Income Tax Division. The NTS said it intends to complete the necessary tax notification process before the end of the year.
🇰🇷 JUST IN : NTS TO RELEASE STAKING AND AIRDROP GUIDELINES IN OCTOBER FOR CRYPTO TAX pic.twitter.com/8GrSs8cMZO
— Tiger Research (@tiger_research_) July 14, 2026
Under current law, gains from transferring or lending digital assets will be taxed as “other income” beginning January 1, 2027. Income above 2.5 million won will be subject to a combined tax rate of 22%, including local income tax.
Tax plans move alongside new crypto legislation
The NTS preparations come as the South Korean government pushes to pass the Digital Asset Framework Act during the second half of the year.
The proposed legislation would establish rules covering digital asset businesses, stablecoin issuance, disclosure requirements, and market supervision. The government also plans to introduce rules for cross-border stablecoin transactions and support legal changes needed for spot Bitcoin exchange-traded funds.
Lawmakers from the ruling Democratic Party have indicated they want both the tax framework and digital asset legislation to move forward. At the same time, the opposition People Power Party continues to oppose crypto taxation, arguing it creates an imbalance with stock investments.
Why are governments creating dedicated crypto tax teams?
Passing a crypto law is only part of the process. Governments also need dedicated teams to monitor transactions, interpret new rules, build reporting systems, and prepare tax guidance before enforcement begins. That is why several tax authorities have created specialist crypto units rather than leaving digital assets under traditional tax departments.
The United States’ Internal Revenue Service expanded its cryptocurrency compliance teams as digital asset reporting requirements grew. At the same time, the United Kingdom’s HM Revenue & Customs established specialist groups to handle crypto investigations and tax enforcement. South Korea is now following a similar path.
By creating a Digital Assets Management Division months before taxation begins, the National Tax Service is preparing its administrative systems ahead of enforcement instead of waiting until the rules take effect. If the Digital Asset Framework Act is approved later this year, the agency will already have a dedicated team in place to oversee both taxation and compliance.
South Korea’s central bank had renewed its call for a legal framework for won-backed stablecoins, with Bank of Korea Governor Shin Hyun-song urging lawmakers to move quickly while insisting that banks should play the leading role in issuing the digital assets.
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