South Korea Pushes Ahead With 22% Cryptocurrency Tax for 2027

The Ministry of Economy and Finance confirmed the decision on August 3, signaling that administrative infrastructure is finally prepared for oversight. Under the current Income Tax Act, the levy comprises a 20% national tax and a 2% local income tax. The first official filings are slated for May 2028, reflecting income generated throughout the 2027 calendar year. To address previous concerns regarding offshore tax evasion, the government plans to utilize the OECD’s Crypto-Asset Reporting Framework, granting authorities access to transaction data from 48 participating jurisdictions, including Japan, Germany, and France.

Despite the government’s stance, the path to implementation remains subject to political friction. The National Assembly must still approve the broader tax reform package, and opposition lawmakers continue to advocate for a total repeal. Critics argue that taxing retail crypto gains while keeping most retail stock investment profits exempt creates an unfair financial environment. Lawmaker Kim Sang-hoon has specifically warned that the current design, which lacks provisions for carrying forward trading losses, may drive domestic capital toward decentralized finance platforms or overseas exchanges. While Finance Minister Koo Yun-cheol suggested that revisions could be considered after the system is in operation, the government remains focused on integrating digital assets into a formal regulatory framework alongside the upcoming Digital Asset Basic Act.