South Korean Parents Surge Crypto Gifts to Minors Ahead of Tax Changes
South Korean parents are rapidly gifting crypto to minor children, seeing a 2.7-fold surge to 4.03 billion won amid upcoming 2027 tax regulations and tighter monitoring.
South Korean parents are increasingly gifting digital assets to their minor children ahead of upcoming tax reforms and tighter regulatory scrutiny. This trend allows families to reduce future tax liabilities and secure family wealth before new reporting mandates take effect.
According to data from the South Korean National Tax Service released by lawmaker Chang Dae-ho, the volume of crypto gifts to minors surged 2.7-fold over the past year. The total value transferred to minors reached 4.03 billion won (approximately $3 million), up from 1.47 billion won the previous year. Among children aged 11 and under, gifts tripled, with reported cases rising from 28 to 65.
The primary driver behind this transfer wave is the government's decision to implement a 22% tax on virtual asset trading profits starting in 2027. Additionally, national tax laws exempt gift transfers to minors up to 20 million won over a decade from taxation. One investor who transferred Bitcoin to his kindergarten-aged son explained that passing assets when prices are relatively low helps maximize future tax savings.
This unprecedented rise in gift reporting reflects how South Korean investors are adapting to new regulatory frameworks. While tax authorities deploy advanced monitoring systems, analysts estimate that actual transfer volumes are significantly higher, as a substantial portion of activity occurs through private, off-exchange wallets.
