South Korea first introduced plans to tax cryptocurrency gains in 2020, when the Ministry of Economy and Finance confirmed that profits from digital assets would be brought into the tax system for the first time. The proposal set a 20% tax on crypto earnings above a set threshold and marked the country’s initial step toward formal regulation of virtual asset income. Since then, the policy has faced repeated delays due to concerns over market readiness, investor impact, and regulatory infrastructure.
Now, the plan is moving back into focus as officials confirm that crypto taxation will proceed from January next year. According to Edaily, Moon Kyung ho, the income tax chief of the South Korean Ministry of Finance and Economy, implementation will go ahead as scheduled, with the National Tax Service working on final guidelines and coordinating with major exchanges to prepare enforcement systems. The tax will apply to gains above 2.5 million KRW and is expected to affect over 13 million investors, signaling a shift from long-standing planning to active rollout.
Government moves to finalise tax framework
At a policy forum in Seoul, a senior official from the ministry said preparations for crypto taxation are in the final stages. The National Tax Service is currently drafting detailed guidelines that will define how digital asset income will be reported and taxed.
According to officials, the guidelines are being developed in consultation with major domestic exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax. These discussions are aimed at aligning reporting standards and ensuring smoother enforcement once the rules take effect.
The ministry also indicated that the official notice will be published soon, with full implementation expected within the year. The clarification comes after earlier uncertainty around whether the tax rollout might be delayed.
22% tax rate to apply to crypto gains
Under the current tax law, income from crypto trading and lending will be classified as miscellaneous income starting January 2026. Profits above 250,000 won will be subject to a combined tax rate of 22%, including local tax.
The policy will apply broadly to an estimated 13 million users based on exchange membership data, making it one of the largest crypto tax implementations in the country.
Officials emphasized that while the timeline remains unchanged, final administrative details are still being refined through ongoing coordination with regulators and industry players.
Notably, South Korea’s tax authority is turning to artificial intelligence to strengthen oversight of cryptocurrency transactions as the country prepares to finally implement a long-delayed tax on digital asset gains.
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