South Korea will begin taxing cryptocurrency gains on January 1, 2027, applying a 22% rate to profits above approximately $1,800. The government confirmed the timeline as regulators collaborate with major exchanges like Upbit and Bithumb on reporting systems, while also expanding Travel Rule requirements to cover all transfers without a minimum threshold.
South Korea will start taxing cryptocurrency gains on January 1, 2027, confirming a firm timeline. The Ministry of Finance and Economy announced the plan would proceed as scheduled.
Moon Kyung-ho, Director of Income Taxation, restated the policy during a National Assembly forum. He said the National Tax Service is preparing detailed guidance and will release it soon according to a report.
Regulators are collaborating with top exchanges such as Upbit, Bithumb, and Korbit. Their work focuses on reporting systems needed for the new tax framework.
The tax will apply to profits from crypto trading and lending treated as “other income.” The rate is 22%, comprising a 20% income tax and a 2% local tax for gains exceeding 2.5 million won (approx. $1,800).
About 13.26 million investors could fall under the reporting framework. The National Tax Service will extract transaction information from exchanges for its Hometax system.
Authorities are also removing the 1 million won threshold for crypto transfers under the Travel Rule. This change means all transactions will require complete verification of the sender and receiver.
The Financial Intelligence Unit (FIU) plans to meet crypto exchanges after May 11, 2026. The talks will address concerns from industry groups, including DAXA.
Officials said they are open to adjustments where needed. However, they still believe oversight protocols will stay robust as the tax implementation approaches.
Simultaneously, a bank-led won stablecoin project is testing post-quantum cryptography for security. The project features BTQ Technologies, iM Bank, and Finger Inc.
