The long-postponed tax on cryptocurrency gains will, according to South Korea’s Finance Ministry, go into force in January 2027.
During an emergency parliamentary conference on virtual asset taxes at the National Assembly Members’ Office Building in Seoul on Thursday, Moon Kyung-ho, head of the ministry’s income tax division, made the announcement, according to South Korea news portal Edaily. Korea Tax Policy Association and People Power Party Representative Park Soo-young co-hosted the discussion.
“We will move forward with virtual asset taxation as scheduled in January next year,” Moon said, perhaps marking the first public affirmation from the ministry that the crypto tax system would advance after many delays.
22% Crypto Tax
As on January 1, 2027, earnings from the sale or lending of virtual assets will be considered “other income” according to the present Income Tax Act. A combined income tax of 20% and a municipal tax of 2% would result in a 22% tax for investors with yearly crypto earnings of 2.5 million Korean won ($1,800). Roughly 13.26 million investors are subject to the regulation.
According to Moon, the National Tax Service is in the process of establishing the new system’s guidelines and has met with the five main exchanges in South Korea—Dunamu (Upbit), Bithumb, Coinone, Korbit, and Gopax—multiple times at the working level to create a draft notice.
He went on to say that sometime in 2026, the notification would be issued for legislative consideration. After the event, Moon spoke to reporters and refrained from using the term “soon.” He clarified that the notification will appear later this year, not immediately.
The cryptocurrency tax in South Korea has been postponed not once, but twice, from 2025 to 2027, because of political disagreements and industry resistance over the preparedness of exchanges and the threshold level. The governing People Power Party has lately introduced a measure to repeal the tax completely, with its implementation scheduled for 2027.