South Korea Confirms 22 Percent Crypto Tax Starting in 2027

The South Korean government has confirmed that a 22 percent tax on cryptocurrency gains will officially begin in January 2027. Under these rules, annual profits exceeding 2.5 million won, which equals about 1,740 dollars, will be subject to a 20 percent national tax plus a local levy. Investors earning less than that threshold will pay nothing. The first tax filings are scheduled for May 2028.

This announcement comes as the local market deals with a sharp drop in activity. Trading volume across the five largest South Korean exchanges fell by nearly 55 percent during the first half of the year. Some lawmakers worry that the new tax policy, which does not allow traders to carry forward losses, could drive investors toward offshore platforms or decentralized alternatives.

Market concentration is also shifting as volume decreases. Upbit has grown its market share to over 67 percent, while smaller exchanges struggle to maintain their footing. With the tax deadline now set for 2027, the focus will be on whether the government considers further adjustments or if the industry continues to consolidate around the largest platforms.