South Korea Confirms 22% Tax on Crypto Gains from 2027

South Korea's Ministry of Economy and Finance has announced plans to introduce a 22% tax on cryptocurrency gains exceeding 2.5 million won starting January 2027. This move is expected to impact around 13.26 million crypto investors in the country, making it one of the most significant regulatory shifts for Asia's largest digital asset market.

The new rules will classify profits generated from transferring or lending virtual assets as 'other income,' subjecting them to a combined 22% rate consisting of a 20% income tax and a 2% local income tax. The government has clarified that the crypto tax framework will remain separate from taxes on financial investment income.

Despite mounting pressure to postpone or scrap the measure, officials have confirmed that implementation will proceed as scheduled, with the National Tax Service coordinating with major crypto exchanges to develop reporting systems and compliance guidelines.