South Korea Confirms 22% Crypto Tax Will Begin in January 2027

South Korea’s finance ministry has confirmed that the country’s long-delayed cryptocurrency tax framework will officially take effect in January 2027. The announcement was made by Moon Kyung-ho, director of the ministry’s income tax division, during an emergency parliamentary forum on virtual asset taxation held at the National Assembly in Seoul.

Under the revised Income Tax Act, profits earned from the transfer or lending of virtual assets will be classified as “other income.” Investors generating more than 2.5 million Korean won, roughly $1,800 annually, from crypto related activities will face a 22% tax rate, including 20% income tax and 2% local tax.

Crypto Exchanges Prepare for New Compliance Requirements

South Korea’s National Tax Service is currently finalizing implementation guidelines and has already held working-level meetings with the country’s five largest exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax. Authorities are expected to publish an official draft notice for legislative review later this year.

The tax policy has already been delayed twice amid political disagreements and concerns over exchange readiness. More recently, lawmakers from the ruling People Power Party proposed removing the tax entirely before its scheduled launch.

AML Rule Changes Spark Industry Concerns

At the same time, South Korea’s crypto sector is also pushing back against proposed anti-money laundering rules. Industry representatives warn that stricter reporting requirements for overseas-linked transfers could dramatically increase compliance burdens for local exchanges and virtual asset service providers.