Starting in January 2027, South Korea will implement a 22% tax on profits from cryptocurrency transactions, as confirmed by the Finance Ministry. This announcement was made by Moon Kyung-ho, the director of the ministry’s income tax division, during an emergency forum on virtual asset taxation at the National Assembly in Seoul.
Profits exceeding 2.5 million Korean won (approximately $1,800) from crypto activities will be classified as “other income,” subjecting investors to both a 20% income tax and a 2% local tax. An estimated 13.26 million investors are expected to be affected by this regulation.
The National Tax Service is currently working on guidance for the new tax system, having engaged with major exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax. A draft notice is anticipated to be published for legislative review within 2026, although Moon indicated that the release would not occur immediately.
This move follows prior delays of the crypto tax, which had been pushed from 2025 to its current start date due to industry concerns and political disagreements.