South Korea Introduces 20% Tax on Individual Crypto Gains From January 2027, Threshold Set at 2.5M Won

According to Economist, South Korea will begin taxing individual cryptocurrency gains starting January 1, 2027. Income exceeding 2.5 million won annually will be classified as miscellaneous income and taxed at a flat rate of 20%. Taxpayers must file and pay income tax by the following May.

Gains from crypto transactions before the end of 2026 remain tax-exempt; however, investors still face source-of-funds scrutiny. Tax professionals warn that proving transaction histories—especially across foreign exchanges, personal wallets, and decentralized finance protocols—poses greater challenges than tax liability itself. The government is implementing domestic exchange data reporting requirements and expanding cross-border information exchange systems, though practitioners say clearer guidance on taxation scope and asset valuation methods is needed.