South Korea’s 22% Crypto Tax Crashes Trading Volume
South Korea confirmed a 22% crypto tax starting in 2027, just as trading volume across its five main exchanges collapsed nearly 55% during the first half of the year.
The timing raises an uncomfortable question about taxing a market that is already shrinking fast.
How the 22% Crypto Tax Will Work
Other income is a tax category covering gains that fall outside wages or business revenue. Under the Income Tax Act, profits from transferring or lending virtual assets will sit in that bracket.
Deputy Prime Minister and Finance Minister Koo Yun-cheol confirmed the schedule on July 29 during a National Assembly committee meeting, saying the government is pushing forward as planned.
The mechanics are straightforward. Annual gains above 2.5 million won, roughly $1,740, face a 20% national tax, while a local levy raises the combined rate to 22%.
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