South Korea’s Tax Agency Creates Digital Asset Division Ahead of January Crypto Tax

South Korea’s National Tax Service has created a new Digital Asset Division as it prepares to begin taxing virtual assets, or cryptocurrencies, from January.

Edaily reported on July 14 that the agency appointed Lee Soon-yong, head of the Nambu Bucheon District Tax Office, as chief of the new division on June 30. It also set up three teams within the unit this month to begin related work in earnest.

The Digital Asset Division is part of the National Tax Service’s Individual Taxation Bureau and will oversee virtual-asset taxation and management. It marks the first time a central government body in South Korea has created an overarching department with “digital asset” in its name.

The division will draw up plans for virtual-asset taxation, overhaul related rules, build a management system, operate relevant computer systems and respond to pending issues. Work on virtual-asset taxation previously handled by the National Tax Service’s Income Tax Division has also been transferred to the new unit.

Under the current Income Tax Act, income from the transfer or lending of virtual assets will be classified as miscellaneous income and taxed starting Jan. 1, 2027. A combined 22% tax rate will apply to virtual-asset income exceeding 2.5 million won ($1,810), made up of a 20% miscellaneous income tax and a 2% local income tax.

The National Tax Service plans to publish a notice related to virtual-asset taxation in the second half of this year and overhaul the computer and administrative systems needed for the tax to take effect next year.

Preparations for the tax are set to proceed alongside the government’s broader push to institutionalize digital assets. In its 2026 Economic Growth Strategy released on July 14, the government said it would push to legislate a Basic Digital Asset Act in the second half of this year.