South Korea Sets Firm Date for Cryptocurrency Tax in 2027

South Korea has finally set a firm date for introducing a tax on cryptocurrency gains. The new policy will take effect on January 1, 2027, after years of delays and postponements. Deputy Prime Minister and Finance Minister Koo Yun-cheol ruled out any further delays in implementing the measure.

The tax will apply to annual cryptocurrency gains exceeding KRW 2.5 million, with a separate 20% income tax rate and an effective rate of 22% when local taxes are included. The introduction of this policy is expected to put pressure on trading activity in South Korea, one of the world's largest retail cryptocurrency markets.

Koo said that any shortcomings in the framework could be addressed after the tax is implemented. This suggests that there may still be some fine-tuning required before the new policy takes effect.