The Korean National Tax Service is developing a cryptocurrency investment return tracking system.

Odaily Planet Daily reports that South Korea's National Tax Service (NTS) announced on Thursday that it has begun preparations to build a tracking system for taxing cryptocurrency investment gains, in line with the government's expansionary fiscal policy and revenue-generating needs. This move comes as the South Korean government plans to tax virtual asset profits starting in January next year. The NTS has issued a tender notice on the public procurement service e-tender platform, proposing to build a comprehensive system for analyzing virtual asset transactions and implementing corresponding taxes. The project budget is 3 billion won (approximately US$2.02 million). The winning bidder will be determined and a contract signed this month. System design will begin in April, and after multiple rounds of testing, trial operation will begin in November, with official launch expected between November and December. The NTS stated that the system is expected to be used to collect personal virtual asset transaction data starting in 2027. Through systematic management and analysis of large amounts of transaction data, it will improve the ability to detect tax evasion. The NTS plans to utilize AI and machine learning to analyze and track abnormal transaction types and patterns, and will share virtual asset analysis data and lists of suspected violators with agencies such as the Korea Customs Service, the Ministry of Statistics and Data, and the Bank of Korea. Starting next January, income from virtual assets exceeding 2.5 million Korean won will be subject to a comprehensive tax rate of 22%, which includes a 20% income tax and a 2% local income tax.