South Korea has officially announced that a 22% tax on virtual asset gains will take effect on January 1, 2027. The Ministry of Economy and Finance confirmed this timeline, with Moon Kyung-ho, director of the income tax division, stating at a National Assembly forum that the government intends to proceed as planned. This marks the first clear public affirmation of the launch date by the ministry.
Under the revised Income Tax Act, any annual gains from cryptocurrency transfers or lending exceeding 2.5 million South Korean won (approximately $1,900) will be subject to a combined tax rate of 22%. This includes 20% national income tax and 2% local income tax, applied to income earned after the effective date.
The National Tax Service (NTS) is developing detailed guidelines for the system, with plans to release them within 2026 after consultations with major local exchanges such as Upbit operator Dunamu, Bithumb, Coinone, Korbit, and Gopax. These platforms will help shape data reporting standards and transaction record formats necessary for tax calculations. The NTS is also building infrastructure to receive crypto trading data from domestic exchanges, with the first tax filing period expected in May 2028 for income earned in 2027.
Despite previous delays and ongoing political debate—including a bill proposed by the People Power Party to abolish the tax before its rollout—the Finance Ministry now appears resolute. Moon rejected arguments that the end of financial investment income tax should affect the crypto tax, emphasizing that the framework was established through a 2020 amendment to the Income Tax Act. The decision is expected to impact approximately 13.26 million investors, based on cumulative Upbit member data from December 2025, highlighting the scale of the market that will be affected.