Overview
- The government reconfirmed on July 29 that annual cryptocurrency gains above 2.5 million won will be taxed from Jan. 1, 2027 at a combined rate of 22 percent.
- Under the rules, income from transferring or lending virtual assets will be treated as "other income" and taxpayers will file their first crypto returns in May 2028 for 2027 earnings.
- The tax design disallows carrying losses forward to offset future gains and charges 20 percent national tax plus a 2 percent local tax on taxable profits.
- A repeal bill introduced by opposition lawmakers in March was sent to a National Assembly subcommittee on July 29, so parliamentary action before the end of 2026 could still block or delay the levy.
- Trading volume across South Korea’s main exchanges fell roughly 54.6 percent in H1 2026, and exchanges must upgrade reporting systems now or risk migration of activity to overseas platforms and DeFi that would weaken tax collection.