South Korea to Impose a 22% Tax on Crypto Gains Exceeding $1,740 Starting in 2027

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South Korea will impose a 22% capital gains tax on crypto profits exceeding 2.5 million KRW ($1,740) starting in 2027. Deputy Prime Minister Kyoo Young-jae confirmed the plan on July 29, with the tax applying to virtual asset income from January 1, 2027. The policy, originally scheduled for 2022, was delayed to 2025 and then to early 2027 in December 2024. The government has no plans for further delays. This move could affect risk-on assets as traders adapt to the new regulatory environment.

ChainThink reports that on July 30, according to ETnews, South Korea's Deputy Prime Minister Koo Yun-cheol stated at the National Assembly's Committee on Finance and Economy on July 29 that South Korea will proceed as planned to tax cryptocurrency gains starting next year.

Starting January 1 next year, income individuals receive from transferring or lending virtual assets, exceeding an annual threshold of 2.5 million Korean won (approximately $1,740), will be subject to a 22% tax rate, including local income tax.

The tax was originally scheduled to take effect in January 2022, then delayed until 2025. A December 2024 amendment further postponed implementation by two years to early 2027; this statement indicates that South Korea currently has no plans to delay the measure again.

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