South Korea’s Finance Ministry has confirmed that a long-delayed tax on cryptocurrency gains will take effect as scheduled in January 2027. Moon Kyung-ho, director of the ministry’s income tax division, publicly confirmed the plan at a parliamentary forum. The new rule imposes a 22% tax on annual profits exceeding $1,800 for an estimated 13.26 million investors.
South Korea’s Finance Ministry has confirmed its long-delayed cryptocurrency tax will take effect in January 2027. Moon Kyung-ho, director of the ministry’s income tax division, announced the decision at an emergency parliamentary forum on virtual asset taxation according to a local news report.
“We will proceed with virtual asset taxation as scheduled in January next year,” Moon stated. This appears to be the ministry’s first public confirmation that the framework will move forward after multiple postponements.
Under the current Income Tax Act, profits from transferring or lending virtual assets will be categorized as “other income” starting Jan. 1, 2027. Investors earning more than $1,800 annually from crypto will face a 22% tax, which includes a 20% income tax and 2% local tax.
Moon said the National Tax Service is finalizing guidance on the new system. The agency has held meetings with South Korea’s five major exchanges, including Dunamu (Upbit), Bithumb, Coinone, Korbit and Gopax, to prepare a draft notice.
He clarified the notice would be published for legislative review during 2026. The tax has been delayed twice before, and the ruling People Power Party recently proposed a bill to scrap it before its 2027 rollout.
Separately, proposed changes to South Korea’s anti-money laundering rules have drawn industry criticism. The industry body DAXA warned that requiring exchanges to flag all overseas-linked transfers of $7,200 or more as suspicious would make compliance unworkable.
The Financial Services Commission and Financial Intelligence Unit proposed these amendments on March 30. A public comment period runs through May 11, with final rules expected in July.
