South Korea will begin taxing cryptocurrency gains exceeding 2.5 million won starting January 1, 2027. Officials confirmed the measure will proceed without further delay.
South Korea plans to impose a combined 22 percent tax on annual cryptocurrency gains above 2.5 million won, or about 1,740 dollars. The tax applies to income from transferring or lending crypto and will be treated separately as other income.
Deputy Prime Minister Koo Yun-cheol told lawmakers on July 29 that the government is pushing forward with the plan as scheduled. The tax was originally set for 2022 and has already been postponed twice.
A bill introduced in March seeks to abolish the tax entirely by removing crypto income from the Income Tax Act. The measure reached a subcommittee on July 29, leaving the outcome uncertain.
Critics including opposition lawmaker Kim Sang-hoon warned that the lack of loss carry-forwards could drive investors to offshore platforms. They called for waiting until the OECD's cross-border reporting framework is in place.
