Crypto traders face 22% tax as South Korea locks 2027 timeline
South Korea plans to start taxing virtual asset income on Jan. 1, 2027, according to a new public statement from the Ministry of Economy and Finance.South Korea plans to tax virtual asset gains above 2.5 million won from January 2027.The National Tax Service is preparing detailed guidance with Upbit, Bithumb, Coinone, Korbit, and Gopax.Political debate continues, but the Finance Ministry says crypto taxation will proceed as currently scheduled. Moon Kyung-ho, director of the ministry‘s income tax division, said at a National Assembly forum that the government would proceed with virtual asset taxation as scheduled. Local reports said this was the ministry’s first clear public stance on the launch date. Under the current Income Tax Act, income from virtual asset transfers or lending will be treated as other income. Annual gains above 2.5 million won will face a combined 22% tax rate. That includes 20% income tax and 2% local income tax. The rule will apply from income generated after Jan. 1, 2027. National Tax Service prepares guidance The National Tax Service is preparing detailed guidance for the new system. Moon said the guidance would be disclosed within 2026, after practical talks with major local exchanges. The tax agency is coordinating with Upbit operator Dunamu, Bithumb, Coinone,