South Korea Confirms 22% Crypto Tax for 2027

Deputy Prime Minister and Finance Minister Koo Yun-cheol confirmed the implementation schedule during a National Assembly committee meeting on July 29. Under the Income Tax Act, gains exceeding 2.5 million won—roughly $1,740—will be classified as other income. Investors will face a 20% national tax, supplemented by a 2% local surcharge, with the first tax filings due in May 2028.

Lawmaker Kim Sang-hoon of the People Power Party challenged the design of the levy, specifically the absence of loss carryforwards. He warned that without the ability to offset losses against future gains, traders may abandon domestic exchanges such as Upbit and Bithumb in favor of decentralized or overseas alternatives. While Koo acknowledged these concerns, he noted that shifting to a capital-gains framework would require a comprehensive overhaul of the nation's broader financial tax structure. Despite the government's current stance, an opposition bill introduced in March remains under review, leaving a legal path for potential repeal or further postponement before the 2027 deadline.