Particle.news
Download on the App Store

South Korea Sets 2027 Start for 22% Tax on Crypto Gains

The finance ministry signaled resolve to proceed despite political pushback.

Overview

  • The Ministry of Economy and Finance, speaking at a National Assembly forum on Thursday, said the virtual asset tax will start on January 1, 2027 and gave no reason to delay it.
  • Annual profits from crypto above 2.5 million won will face a 22% levy made up of a 20% national tax and a 2% local tax, with such earnings treated as other income under the tax code.
  • Officials said the rules cover trading, transfers, and lending of digital assets and are designed to capture newer income like staking rewards and airdrops without legal gaps.
  • The National Tax Service will publish detailed guidance in 2026 after talks with major exchanges, and Upbit, Bithumb, Coinone, Korbit, and Gopax will help set data standards for tax reporting.
  • First filings covering 2027 income are expected in May 2028, and while lawmakers have floated scrapping the plan, the ministry notes the crypto tax rests on a 2020 law and would affect a market counted in the millions of users.