South Korea’s tax authority has begun building technological infrastructure to enforce a long-delayed cryptocurrency tax policy. The country’s National Tax Service (NTS) has opened a procurement process for a system designed to track digital asset transactions and detect potential tax evasion.
According to reporting by The Korea Times, the initiative forms part of preparations for the government’s planned taxation of cryptocurrency investment profits, scheduled to begin in January 2027.
NTS launches procurement for crypto monitoring system
The NTS confirmed that it has opened a bid to build an integrated platform capable of analyzing virtual asset transactions for taxation purposes. The project carries an estimated budget of about 3 billion Korean won, roughly $2 million.
The tender appeared on the electronic procurement platform operated by the Public Procurement Service, which manages government contracting for goods and services.
A contractor is projected to be selected and a contract finalized within March. Development will begin soon afterward.
The agency stated that the system will allow authorities to process large volumes of cryptocurrency transaction data. The platform will support audits and help identify possible tax evasion cases linked to digital asset trading.
“It is expected to serve our goal of collecting individuals’ virtual asset transaction data starting in 2027,” the NTS said, according to The Korea Times.
AI will analyze transaction patterns
The planned system will rely on artificial intelligence and machine learning to examine transaction behavior across cryptocurrency markets.
The technology is planned to detect unusual transaction types and patterns. Such patterns may indicate undeclared income or attempts to avoid taxation.
The tax agency stated that the platform will systematically manage and analyze large datasets generated by crypto trading activity. Officials believe that automated analysis will improve oversight compared with manual reviews of trading records.
The NTS also intends to share analytical results with other government bodies. Agencies listed in the report include the Korea Customs Service, the Ministry of Data and Statistics, and the Bank of Korea.
These agencies may receive transaction analysis data and lists of suspected offenders when investigations require cooperation across departments.
Development timeline targets late-2026 launch
The tax authority has outlined a multi-stage development plan for the platform.
Once the contractor selection process concludes, system design will begin in April. Engineers will conduct technical development and testing throughout the year.
Authorities plan to begin a pilot program in November. The test period will allow the tax agency to verify the system’s ability to analyze transaction records and flag suspicious activity.
Officials expect the platform to reach full operational readiness between November and December 2026.
The timeline places the monitoring infrastructure in service shortly before the cryptocurrency tax framework takes effect.
South Korea prepares for long-delayed crypto tax implementation
South Korea’s cryptocurrency taxation policy has faced repeated delays since lawmakers approved it in 2020.
Government officials and legislators debated implementation timelines several times in recent years. Industry groups expressed concerns about tax thresholds and compliance requirements. Political discussions led to multiple postponements of the policy.
In 2024, lawmakers discussed whether to launch the tax in 2025 or delay it again. The government later set January 2027 as the expected start date, as HODLFM reported earlier.
Under the current plan, cryptocurrency investment gains above 2.5 million Korean won per year will face taxation. The combined rate will reach 22 percent.
That rate consists of a 20 percent national income tax and a 2 percent local income tax.
Once the tax rules go into effect, the new monitoring platform should help with enforcement.
Enforcement tools signal stronger oversight of crypto markets
The NTS stated that systematic analysis of transaction data will help authorities detect hidden income among delinquent taxpayers.
The platform is supposed to help with tax audits and find income from cryptocurrency trading that taxpayers don't report.
South Korea remains one of Asia’s most active cryptocurrency markets, with significant participation from retail investors. The growing scale of trading activity has increased pressure on regulators to strengthen oversight mechanisms.
The procurement bid marks a concrete step toward building the enforcement tools required for the upcoming tax framework.
Matvii Diadkov
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