South Korea Sees Sharp Rise in Crypto Gifts Ahead of Tax Law Changes

South Korea has seen a significant increase in cryptocurrency gifts to minors before new tax rules take effect in 2027. According to recent data, reported crypto gifts to children aged 18 or younger rose by 2.7 times in 2025, reaching a total value of 4.03 billion won ($2.8 million). This is a sharp increase from the previous year's 1.47 billion won.

The number of reported gifts nearly doubled to 103 last year, with a significant spike among younger children. Crypto gifts to minors aged 11 or younger tripled in value, reaching 2.35 billion won, while the number of cases rose from 28 to 65.

This trend is occurring as South Korea prepares to expand its inheritance and gift tax inquiries to include virtual asset service providers like Upbit and Bithumb from January 2027. The government's 2026 tax reform plan also introduces a 22% tax rate on annual crypto gains above 2.5 million won, which will take effect in 2027.