South Korea to Tax Crypto Gains Above $1,850 at 22% in 2027

The Ministry of Economy and Finance confirmed that, from Jan. 1, 2027, annual net gains from virtual assets above 2.5 million won ($1,850) will be taxed at a 22% rate. The levy combines a 20% national income tax and a 2% local income tax. Gains from the transfer or lending of virtual assets will be classified as “other income” under the Income Tax Act from that date.

Moon Kyung-ho, director of the ministry’s income taxation division, confirmed the timetable at an emergency forum at the National Assembly hosted by Rep. Park Soo-young and the Korea Tax Policy Association. “We will proceed with virtual asset taxation as scheduled in January next year,” he said.

Government data indicate roughly 13.26 million virtual-asset investors could be affected; that figure is based on cumulative membership at Upbit as of last December. The tax applies to annual net gains that exceed 2.5 million won; earnings above that threshold will be subject to the combined 22% rate.

The National Tax Service is drafting the technical framework for collection and has held meetings with five major operators — Dunamu (operator of Upbit), Bithumb, Coinone, Korbit and Gopax — to develop implementation guidance. Officials expect to issue a formal notice and provide final technical guidance to exchanges in 2026. Moon later clarified to reporters that his earlier use of the word “soon” should not be read as an immediate release. “The expression ‘soon’ could be misunderstood as if it would be released tomorrow or the day after,” he told reporters. “The National Tax Service notice is scheduled to take effect sometime this year.”

Some lawmakers and investor groups have urged a delay, citing concerns about market volatility and the need for stronger reporting and regulatory systems. The finance ministry has maintained the Jan. 1, 2027 start date.

Under the planned rules, exchanges and other virtual-asset operators will need to coordinate with tax authorities on reporting and the practical mechanics of applying the new classification and thresholds. Officials say those operational details are being discussed as part of the NTS drafting process.