South Korea Confirms 20% Tax on Crypto Gains from January 2027

South Korea has confirmed plans to introduce a 20% tax on cryptocurrency gains exceeding 2.5 million won, set to take effect in January 2027. The tax framework treats crypto profits as 'other income' under the Income Tax Act and includes an additional 2% local surtax, bringing the total tax rate to 22%. This policy has been delayed several times but is now confirmed.

The announcement is expected to impact a significant portion of the crypto investor base in South Korea, potentially influencing market sentiment and investment behavior. Market participants will be closely monitoring the reaction of South Korean crypto investors and any potential regulatory responses that might arise from this tax policy.