South Korea’s National Tax Service plans to publish crypto tax guidelines in November. The guidance precedes a 22% levy on qualifying gains starting January 1, 2027.
Staking, airdrops, and decentralized finance remain the most debated areas. Exchanges still face questions about their reporting systems.
What the 22% South Korea’s Crypto Tax Covers
Qualifying income is gains from transferring or lending digital assets, above an annual basic deduction of 2.5 million won (~ $1,870). The national rate is 20%, rising to 22% when local income tax is added.
The framework takes effect on January 1, 2027, and qualifying income will be taxed as separate other income under the Income Tax Act.
Taxable income is calculated after acquisition costs and transaction expenses, and annual gains and losses are combined before the basic deduction applies.
Digital assets acquired before the rules begin receive special treatment. Their acquisition value generally uses the higher of the original cost or the market value just before implementation. Investors who bought before 2027 should therefore keep records of their original costs.
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🇰🇷 South Korea Leads East Asia’s Crypto Economy
— ELYSIA (@ELYSIA_HQ) October 7, 2026
South Korea recorded $449.1B in crypto activity, leading East Asia by a wide margin, followed by Japan ($228.3B), Hong Kong ($192.2B), China ($176.3B), and Taiwan ($140.4B).
But each market is developing differently. Korea remains… pic.twitter.com/1KuBT8I1Tk
Investors would file returns for 2027 income in May 2028, when residents declare the previous year’s income between May 1 and May 31.
Are Exchanges and Investors Ready for January?
On October 13, Commissioner Lim Gwang-hyeon told lawmakers during a parliamentary audit that guidance would arrive in November.
He said the agency was working with exchanges and the Ministry of Finance and Economy to prepare their systems. That treatment depends on whether an activity involves transferring or lending digital assets.
“Once the law takes effect, we must receive data and begin verification starting from the tax returns filed in May 2028,” Lim said.
Exchanges discussed at the hearing include Upbit, Bithumb, Coinone, DigitalX and Gopax. Lawmakers questioned whether their records would be consistent enough to meet the deadline, and transfers between private wallets remain the hardest to track because no domestic exchange holds customer data on them.
Separately, Korean regulators ordered website blocks on 27 unregistered overseas exchanges, including KuCoin, MEXC and BingX.
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🇰🇷HUGE: South Korea officially orders a block on 27 crypto exchanges, including KuCoin, BitMart and MEXC.
— Coin Bureau (@coinbureau) October 14, 2026
The Financial Intelligence Unit says the platforms never registered under Korea’s anti-money laundering law.
Their websites will be blocked for Korean users, and existing… pic.twitter.com/T0TT79hCgH
Opposition continues as well: a petition reached the 50,000 signatures needed for parliamentary consideration, and the People Power Party has proposed postponing the tax until January 2030.
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