# South Korean Tax Official Says Bithumb Black Costs May Face Deduction Limits

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/39422
Published: 2026-10-23T23:12:48.000Z
Updated: 2026-10-23T23:12:48.000Z
Section: Regulation

> Park Hae-young said the spending appeared to qualify as business promotion expenses. South Korean rules cap deductions in that category.

South Korea’s National Tax Service (NTS) Deputy Commissioner Park Hae-young said Thursday, Oct. 22, that Bithumb’s prepaid-card spending appeared to qualify as business promotion expenses.

The classification affects how much of the spending can be deducted from taxable income. South Korean rules allow full deductions for promotional expenses distributed to all eligible customers under standards disclosed in advance. Business promotion expenses, the current term for the former entertainment-expense category, face deduction limits. For companies outside the small and midsize business category, the basic limit is 12 million won, plus an amount tied to revenue. Bithumb has treated the card spending as promotional costs.

Bithumb, a South Korean cryptocurrency exchange, began its Black Premium membership in January 2024 for customers with at least 100 billion won in monthly trading volume. The program includes a prepaid card called Bithumb Black, with benefits assigned across three tiers based on factors that include trading volume and deposits.

The highest level, Signature Black, has three members. Each can spend up to 35 million won per quarter, or 140 million won a year. Members in the top 30% of the Black Premium tier receive a 5 million won quarterly allowance, while the general Black tier has a 3 million won quarterly allowance.

From February 2024 through September 2026, Bithumb issued cards to 228 people; 73 remained in use. The broader membership package includes golf, yacht trips, hotel stays, overseas travel and luxury gifts.

Park said the NTS would investigate strictly if it confirmed tax evasion.