South Korea to Start Crypto Tax in Jan. 2027, Levying 22% on Gains Above 2.5M Won

South Korea will begin taxing virtual asset gains from Jan. 1, 2027, the Ministry of Economy and Finance has confirmed, formalizing the government's timeline publicly for the first time. Moon Kyungho, director of the ministry's income taxation division, told an emergency forum at the National Assembly that the government will proceed as planned despite continued debate over a possible delay. The forum was hosted by Rep. Park Sooyoung of the People Power Party and the Korea Tax Policy Association. Under the current Income Tax Act, profits from transferring or lending virtual assets will be treated as "other income" starting Jan. 1, 2027. A combined 22% rate—20% income tax plus 2% local income tax—will apply to annual gains exceeding 2.5 million won (about $1,850). The move is expected to affect a large retail base. Government data puts the number of virtual asset investors at about 13.26 million, based on cumulative membership at Upbit, the country's largest exchange, as of last December. Moon said the National Tax Service (NTS) is completing the technical groundwork for collection. The NTS is preparing a formal notice and has held multiple working-level meetings with five major operators—Dunamu, Bithumb, Coinone, Korbit and Gopax—to draft the guidance. He initially told attendees the notice would be released "soon," then уточ clarified to reporters that the wording could be misread as an imminent announcement. Moon said the NTS notice is scheduled to take effect sometime this year, with final notices for major exchanges such as Upbit and Bithumb expected in 2026. The reaffirmed start date comes as some political groups and investor communities call for another postponement, citing market volatility and the need for stronger regulatory infrastructure. The ministry's latest comments indicate the administration remains aligned with the current legislative roadmap.