Terraform Labs Owes $78.5 Million in Taxes to South Korea: What's Happening?

Terraform Labs has been fighting for survival as one after the other, the problems seem to pile up. One significant issue involves a hefty tax bill from South Korea's government. According to reports, Terraform Labs faces a tax evasion fine of 100 billion won ($78.5 million).

Recent headlines highlight South Korea's National Tax Service (NTS) action. An earlier report unveiled that South Korea’s National Tax Service (NTS) has imposed a 100 billion won ($78 million) fine on Terraform Labs and Do Kwon for alleged tax irregularities.

According to a report published in Naver news, South Korea’s national tax agency has slapped Terraform Labs and its co-founder with a $78 million, or 100 billion won penalty. The story continues, as Hangkyung reported that South Korea’s National Tax Service has slapped Terraform Labs with a 100 billion won (US$78.6 million) tax evasion fine. This comes after an investigation into the company's tax practices.

Just days after the legal team of Terraform Labs jumped ship, Do Kwon was reportedly ordered by South Korea’s National Tax Service to pay 100 billion won. According to one of the recent reports, Do Kwon and Terraform Labs were fined for $78 million by tax authorities in South Korea.

The situation is complex. One of them included owning $78 million in taxes to South Korea, but Kwon refuted this, saying his firm had paid its dues. Kwon denied this for being true and said that his firm had paid. CryptoPotato summarized the events that Terraform Labs paid 100 billion won ($78.68 million) in taxes to the Korean Tax Office at the end of 2025.

According to a report by Law, the specifics surrounding the alleged tax evasion are still unfolding. The headquarters of Terraform is at the center of scrutiny.

Stay tuned for updates as this story develops regarding Terraform Labs' $78.5 million tax dispute with South Korea.