South Korea confirms crypto tax launch in January 2027 — 22% rate on gains above KRW 2.5M!

South Korea's government has confirmed it will proceed with virtual asset taxation as scheduled from January 1, 2027, with the National Tax Service now coordinating directly with the country's five major exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — to finalize implementation details.

Under the existing Income Tax Act, crypto gains exceeding KRW 2.5 million (roughly $1,800) will be taxed at a combined rate of 22%, comprising a 20% income tax and a 2% local income tax surcharge. The threshold is relatively low by global standards, meaning a broad segment of retail investors will fall within scope.

The move ends years of regulatory delays and signals that Seoul is no longer willing to defer the question. For Korean retail traders — who represent some of the highest per-capita crypto trading volumes in the world — the January deadline is now a hard planning date.