South Korea to Levy 22% Tax on Crypto Gains Above $1,800 From 2027

South Korea will begin taxing cryptocurrency profits in January 2027, applying a 22% rate to annual gains exceeding 2.5 million won (about $1,800), the Ministry of Economy and Finance said. Under revisions to the Income Tax Act, income from transferring or lending virtual assets will be treated as "other income." The 22% burden comprises a 20% income tax plus a 2% local income tax. Officials estimate the measure could affect roughly 13.26 million crypto investors nationwide. The ministry said the virtual-asset levy will be administered separately from taxes on financial investment income. It also ruled out additional delays or repeal despite political pressure, citing plans to implement the tax as scheduled. At an emergency virtual-asset taxation forum in Seoul, Moon Kyungho, director of the ministry's income tax division, said, "We will implement the virtual asset tax in January next year as scheduled." He added that taxing virtual assets as other income at a 20% rate can be more favorable than comprehensive taxation in some cases. Preparation work is underway at the National Tax Service, which is coordinating with the country's five largest exchanges—Upbit, Bithumb, Coinone, Korbit and Gopax—to build reporting systems and compliance guidance ahead of the rollout. The government also plans separate tax standards for newer income types such as staking rewards, airdrops and lending income. Authorities acknowledged challenges in tracking trading on overseas venues, decentralized exchanges (DEXs) and peer-to-peer platforms, and said they will rely on foreign financial account reporting and the global CryptoAsset Reporting Framework (CARF). The government also rejected concerns about double taxation, arguing that capital gains taxes on crypto profits and VAT on exchange service fees apply to different tax bases. South Korea remains one of the world's most influential crypto trading hubs, particularly among retail investors.