National Tax Service Introduces Digital Asset Transaction Tracking Program and Strengthens Tax Evasion Investigations

The National Tax Service (NTS) will implement an additional transaction tracking program to combat tax evasion and asset concealment using digital assets. Plans are in place to enhance an AI-based forensic system to trace the movement paths of digital assets and identify their ultimate beneficiaries. On the 12th, during a meeting of national tax office heads held at the Government Sejong 2nd Building, the NTS announced its 'National Tax Administration Operation Plan for the Second Half of 2026.' The NTS will strengthen its analytical efforts regarding cases where high-value and habitual defaulters hide assets through digital assets, and will conduct joint searches with local governments and the Customs Service. The functionality to verify fund movements through exchanges and personal wallets will also be enhanced through the digital asset transaction tracking program. The reward system for reporting tax evasion and concealed assets will be restructured, lowering the minimum collection amount from 50 million KRW to 30 million KRW, while the payment rate will increase to 10-30%. The NTS will establish a dedicated team for 'tracking defaulters and linking tax investigations' within its irregular tax investigation department and has revealed a case where it traced 22.6 billion KRW through irregular remittances by digital asset exchange operators. Taxation on income generated from the transfer and lending of digital assets is set to take effect from January 1 of next year.

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