Seoul to Tax Self-Custody Crypto Gains at 22% From 2027

South Korea will apply a 22% levy on cryptocurrency gains from foreign exchanges and self-hosted wallets starting Jan. 1, 2027, the finance ministry said. The tax covers annual earnings above 2.5 million won, or about $1,800, whether held on a domestic platform, a regulated international exchange, or a private wallet under direct user control. Self-custody does not exempt a holder from declaring the gains, the National Tax Service confirmed.

Enforcement will tap the OECD Crypto-Asset Reporting Framework. CARF lets member states automatically exchange data on cryptocurrency holders and regulated service providers. Seoul also plans to pull foreign-exchange records through existing overseas financial account disclosure rules. The NTS is building a unified analytics platform for transaction and earnings intelligence, though officials have not released any revenue projections from the tax.

The levy is structured as miscellaneous income: 20% federal tax plus a 2% local surcharge. The 2.5 million won exemption resets annually. The government has kept the Jan. 1, 2027 start date despite pressure from the People Power Party to delay or scrap the plan entirely.