South Korea plans to start taxing virtual asset income on Jan. 1, 2027, according to a new public statement from the Ministry of Economy and Finance.
Summary
- South Korea plans to tax virtual asset gains above 2.5 million won from January 2027.
- The National Tax Service is preparing detailed guidance with Upbit, Bithumb, Coinone, Korbit, and Gopax.
- Political debate continues, but the Finance Ministry says crypto taxation will proceed as currently scheduled.
Moon Kyung-ho, director of the ministry’s income tax division, said at a National Assembly forum that the government would proceed with virtual asset taxation as scheduled. Local reports said this was the ministry’s first clear public stance on the launch date.
Under the current Income Tax Act, income from virtual asset transfers or lending will be treated as other income. Annual gains above 2.5 million won will face a combined 22% tax rate.
That includes 20% income tax and 2% local income tax. The rule will apply from income generated after Jan. 1, 2027.
National Tax Service prepares guidance
The National Tax Service is preparing detailed guidance for the new system. Moon said the guidance would be disclosed within 2026, after practical talks with major local exchanges.
The tax agency is coordinating with Upbit operator Dunamu, Bithumb, Coinone, Korbit, and Gopax. These exchanges are expected to help shape data reporting standards and transaction records for tax calculations.
The plan also connects to earlier reports that the NTS is building systems to receive crypto trading data from domestic platforms. The first full tax filing period for affected investors is expected in May 2028, covering income earned in 2027.
This setup means exchanges will play a direct role in the tax process. They will need to provide records that help calculate taxable gains, lending income, and other reportable virtual asset activity.
Political debate remains active
The tax plan has faced repeated delays. Earlier crypto.news coverage reported that South Korean regulators agreed in 2024 to postpone the 20% crypto tax by two years, pushing the start date from 2025 to 2027.
At the time, lawmakers said the market needed more preparation before taxation could begin. The debate centered on exchange data systems, investor burden, and whether the 2.5 million won threshold was too low.
More recently, crypto.news reported that the People Power Party proposed a bill to abolish the planned 22% crypto gains tax before its 2027 rollout. The proposed tax had already been delayed three times due to political disagreement and industry pushback.
However, the latest Finance Ministry position suggests the government is preparing to move ahead unless lawmakers change the law before the start date.
Investor reporting rules move closer
The Finance Ministry also rejected the view that the end of South Korea’s financial investment income tax should delay virtual asset taxation. Moon said the crypto tax framework was already created through the 2020 Income Tax Act amendment.
The tax will affect a large market. Local reports cited about 13.26 million investors, based on cumulative Upbit member data as of December 2025.
