Seoul finalizes plans to tax annual cryptocurrency gains exceeding 2.5 million won at a 22% rate from January 2027.
South Korea will impose a 22% tax on annual cryptocurrency gains above 2.5 million won ($1,740) starting January 1, 2027. The measure, delayed three times since its original 2022 target, will treat crypto income as “other income” with no loss carry-forward provisions.
The tax was initially scheduled for 2022 but postponed to 2025, then further delayed to 2027 in a December 2024 amendment. Authorities confirmed the 2027 timeline, rejecting calls for another postponement.
Critics argue the rules may reduce domestic demand and push investors toward offshore platforms due to the lack of loss offsets.