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South Korea to tax crypto gains above $1,740 starting Jan. 1, 2027

The levy targets annual crypto gains over 2.5 million won at a combined 22% rate, after multiple delays that would otherwise push the tax further out.

Reported · Written up by our desk · Regulation

South Korea plans to begin taxing cryptocurrency gains exceeding 2.5 million won, about $1,740, starting Jan. 1, 2027, signaling it will not postpone the measure again, according to CoinDesk. The tax would apply to gains from transfers or lending of crypto under the current framework, with income treated as “other income.” Investors would receive a 2.5 million won annual deduction, then pay a 20% national tax rate on gains above that threshold, or 22% including local income tax, according to Korea’s National Tax Service. CoinDesk reports that the measure has been delayed multiple times. It was originally due in January 2022, pushed to 2025, then extended again by a December 2024 amendment to start in 2027. Opposition lawmakers criticized the plan for lacking loss carryforwards, warning it could reduce domestic demand and encourage investors to shift activity to offshore platforms, including overseas centralized exchanges, decentralized platforms, and peer-to-peer markets. A separate bill introduced in March would abolish the tax by removing crypto income from the Income Tax Act, and the proposal was referred to a subcommittee after being taken up in parliament on July 29.

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