South Korea sees sharp rise in crypto gifts to children before 2027 tax rules

South Korea reported a rapid increase in cryptocurrency gifts to minors, with the total value rising to 4.03 billion won in 2025. The surge comes ahead of new tax‑authority powers and a forthcoming crypto income tax.

Growth in gifts to minors

According to data from the National Tax Service, the number of reported crypto gifts to children aged 18 or younger more than doubled, reaching 103 cases in 2025 compared with 53 in the previous year. The total value of these gifts jumped from 1.47 billion won to 4.03 billion won, a 2.7‑fold increase.

Gifts to children aged 11 or younger showed an even sharper rise: cases grew from 28 to 65, and the combined value tripled to 2.35 billion won.

Broader inheritance and gift tax landscape

In 2025, the tax authority recorded 423 crypto inheritance and gift cases worth 45.86 billion won, 2.4 times the number of cases and 3.4 times the value of the prior year. Of the 360 transactions classified specifically as gifts, roughly one‑third involved minors.

Upcoming regulatory changes

From January 1 2027, virtual‑asset service providers such as Upbit and Bithumb will be added to the list of institutions subject to inheritance and gift‑tax inquiries. This expands the National Tax Service’s ability to obtain records on digital assets held by donors or heirs.

Separately, the government confirmed that annual crypto gains exceeding 2.5 million won will be taxed at a combined 22 % rate (20 % national plus local tax) beginning in 2027. The rule applies to gains from domestic and foreign exchanges, as well as activities such as staking, airdrops, lending and hard forks.

Current gift‑tax treatment

Crypto gifts are already subject to South Korea’s gift‑tax framework. Valuation uses average daily prices from one month before and after the gift date for assets traded on designated exchanges, while less‑traded assets are valued on the gift date. Deductions for minors are capped at 20 million won over a ten‑year period.

Future reporting enhancements

The tax reform package also prepares for participation in the OECD’s Crypto‑Asset Reporting Framework, which will facilitate cross‑border information exchange on crypto transactions.