South Korea Sets 2027 Deadline for Crypto Tax on Private Wallets

Under the planned framework, crypto gains exceeding a 2.5 million won annual deduction will be classified as other income. The levy consists of a 20% national tax supplemented by a local income tax, reaching a cumulative rate of 22%. While the government maintains the 2027 implementation date, the National Tax Service acknowledged that monitoring self-custodied assets presents significant enforcement hurdles. To mitigate this, authorities are developing specialized transaction tracking and analysis software to detect unreported activity.

Tax officials are also leveraging the OECD’s Crypto-Asset Reporting Framework to exchange transaction data with international jurisdictions. This global initiative aims to close gaps created by the shift of domestic capital to foreign platforms, which saw $60 billion in outflows during the second half of 2025. Despite ongoing legislative pressure from the People Power Party to delay or repeal the measure, the government continues to refine guidance for major domestic exchanges including Upbit and Bithumb. Regulations regarding complex activities like staking, lending, and airdrops remain under active review, with officials yet to provide revenue projections for the incoming regime.