South Korea Confirms 22% Tax on Cryptocurrency Gains Effective January 1, 2027

According to BlockBeats, South Korea's Ministry of Economy and Finance confirmed on May 8 that it will impose a 22% tax on cryptocurrency trading gains starting January 1, 2027, ending years of political debate over digital asset taxation.

Under the revised Income Tax Law, crypto profits from transfers or lending will be classified as "other income." Annual gains exceeding 2.5 million Korean won (approximately $1,800) will be subject to the combined 22% rate, comprising 20% national income tax and 2% local tax. The government estimates the policy will affect approximately 13.26 million cryptocurrency investors. South Korea's National Tax Service is finalizing operational guidelines and has coordinated with five major domestic exchanges on technical reporting and compliance systems.