South Korea Confirms Crypto Tax Starts in 2027 at 22% for Investors

South Korea has ended years of uncertainty over its crypto tax policy after confirming that it will go ahead as planned in 2027. Investors will pay a 22% tax on annual cryptocurrency gains exceeding 2.5 million Korean won, which is approximately $1,800.

The new rules mean that income from crypto trading and lending will be classified as 'other income' rather than financial investment income.

South Korea's Deputy Prime Minister and Finance Minister Koo Yun-cheol confirmed the plans during a National Assembly Strategy and Finance Committee session, stating that the government is proceeding with the plan to begin taxation on virtual assets next year as scheduled.

The tax was initially set to take effect in 2021 but was repeatedly delayed due to industry concerns and political pressure. The announcement has sparked debate across South Korea's crypto industry, with some warning that traders could move their activity to overseas exchanges to avoid higher tax costs.