South Korea plans to tax crypto gains over $1,740 as political battle moves to parliament
South Korea is moving forward with plans to tax cryptocurrency gains starting in 2027, despite political opposition and concerns about capital flight. The proposed tax would apply a 20-22% rate on gains exceeding 2.5 million won.
Why it matters
This represents a significant shift in regulatory policy for one of the world's most active cryptocurrency markets.
The country plans on taxing cryptocurrency gains from Jan. 1, 2027, signaling that it does not intend to postpone the measure for a fourth time.
The tax was originally due to take effect in January 2022 and had been postponed until 2025 . A December 2024 amendment delayed its introduction by another two years, to the start of 2027.
“We are pushing forward with the plan to tax [cryptocurrency] starting next year as scheduled., Deputy Prime Minister Koo Yun-cheol told lawmakers at a July 29 meeting of the National Assembly’s Finance and Economy Planning Committee.
Under the current framework, income from transferring or lending crypto will be taxed separately as “other income.” Investors will receive an annual deduction of 2.5 million won, with gains above that threshold subject to a 20% national tax rate, or 22% including local income tax, according to Korea’s National Tax Service .
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