South Korea Confirms Crypto Tax Plan Starting January 2027

South Korea is moving forward with plans to tax crypto gains above 2.5 million won, roughly $1,740, at a combined rate of up to 22%, signaling the government does not intend to delay the measure again.

Long-Delayed Tax Finally Set to Take Effect

Originally scheduled to begin in 2022, the tax has already been postponed multiple times, most recently pushed back to 2027 through an amendment passed in late 2024. Speaking before parliament’s Finance and Economy Planning Committee, Deputy Prime Minister Koo Yun cheol confirmed the government intends to proceed with implementation as planned next year.

How the Tax Would Work

Under current rules, income from transferring or lending crypto assets would be classified as separate income, with investors receiving an annual deduction before the tax applies. Amounts above that threshold would face a 20% national tax, rising to 22% when including local income tax.

Opposition Raises Concerns

A leading opposition lawmaker criticized the plan for lacking loss carryforward provisions, warning investors could shift activity toward overseas exchanges or decentralized platforms instead. He suggested taxation should wait until international crypto reporting standards are fully in place. A separate bill proposing to repeal the tax entirely has also been referred to committee review, meaning the outcome remains uncertain ahead of the 2027 deadline.