South Korea's Cryptocurrency Taxation Plan Faces Criticism and Concerns

Seoul, South Korea - The Korean government's cryptocurrency taxation plan has intensified debate among industry experts and policymakers.

The Income Tax Act and National Tax Service guidelines state that gains from virtual asset transfers or lending will become taxable from January 1, 2027. This includes annual gains exceeding 2.5 million won, levied at 20% as miscellaneous income, with an effective rate of 22% including local income tax.

Industry experts argue that the current framework is inconsistent and may lead to enforcement issues, while government officials defend the scheduled implementation. A National Tax Service official stated that transaction data will be collected from cryptocurrency service providers, although individuals remain responsible for filing their own tax returns.