Korean National Tax Service Launches Virtual Asset Transaction Tracking System Construction, Paving the Way for 2027 Taxation

The system construction comes as the government plans to impose taxation on virtual asset profits starting January next year. According to the announcement, the National Tax Service has conducted bidding for the "Virtual Asset Transaction Analysis Comprehensive System" construction project. The project was published by the Procurement Service, which is responsible for government and public institution procurement, on its electronic bidding platform, with a budget of 3 billion Korean won (approximately $2.02 million). According to the plan, the winning bidder will be selected and signed this month, system design will commence in April, and after multiple rounds of testing, the system will enter trial operation in November, with an expected official launch by year-end.

The National Tax Service stated that the system will begin collecting individual virtual asset transaction data starting from 2027. Through systematized management and analysis of massive transaction information, the system will more effectively discover tax evasion behaviors, including identifying hidden income of tax debtors through tax audits.