South Korea Confirms Crypto Tax: 22% on Gains From 2027

Kim argued implementation should wait until the OECD's Crypto-Asset Reporting Framework is fully operational. That would let authorities exchange tax information across borders.

Koo acknowledged the concern. Moving virtual assets into a capital-gains framework would require a broader review of South Korea's tax treatment of financial markets, he said. He left open the possibility of revising the system after authorities collect operational data.

A separate opposition bill introduced in March seeks to remove crypto income from the Income Tax Act entirely. Lawmakers referred the proposal to a subcommittee on July 29. Repeal or another delay remains legally possible before the end of 2026.

The tax confirmation comes as South Korea considers a broader regulatory framework for digital assets and stablecoins. Hashed Open Research and the Solana Policy Institute called for interim stablecoin licensing guidance in a policy report published July 29. The recommendations include temporary rules covering issuance, payments, permitted activities and foreign-issued tokens while lawmakers negotiate the Digital Asset Basic Act. The proposals are advisory and do not change existing law. The report argues that waiting for the complete legislation could leave businesses without clear requirements for issuing or using won-backed stablecoins.

South Korea is also expanding state-backed investment in technology. The government approved plans for a 20 trillion won investment account under the Korea Investment Corporation. Unlike KIC's existing overseas-focused portfolio, the new account can invest domestically in artificial intelligence, data centers and other strategically important industries.

The Korean framework differs from the U.S. approach. The Internal Revenue Service generally treats digital assets as property. U.S. taxpayers can use capital losses to offset capital gains. South Korea's lack of loss carryforwards could leave active traders with a less flexible tax position. Domestic exchanges must now prepare their reporting infrastructure. Lawmakers still consider the repeal bill and possible changes to loss treatment. Unless the National Assembly intervenes, the 22% levy will take effect on Jan. 1.