South Korea Plans November Crypto Tax Rules Ahead of 22% Levy in 2027

South Korea’s National Tax Service plans to publish cryptocurrency tax guidelines in November ahead of a 22% levy (a 20% national rate plus local income tax) on qualifying digital asset gains taking effect on January 1, 2027. Qualifying income includes gains from transferring or lending digital assets above an annual basic deduction of 2.5M won (~$1,870), calculated after acquisition costs and transaction expenses with annual gains and losses combined before the deduction. Separately, South Korean regulators ordered website blocks on 27 unregistered overseas crypto exchanges, including KuCoin, MEXC, and BingX, while lawmakers during an October 13 parliamentary audit questioned whether domestic exchanges such as Upbit, Bithumb, Coinone, DigitalX, and Gopax have consistent enough reporting systems to meet the deadline or track private wallet transfers. Assets acquired before 2027 will generally use the higher of original cost or market value just before implementation, with first tax returns for 2027 income scheduled for May 2028 despite a 50,000-signature parliamentary petition and a People Power Party proposal to postpone the tax until January 2030. "Once the law takes effect, we must receive data and begin verification starting from the tax returns filed in May 2028." — Lim Gwang-hyeon, Commissioner of South Korea’s National Tax Service.