South Korea has said that its long-delayed crypto tax will start on January 1, 2027. Once the national tax and local surcharge are added, the effective tax rate will be 22% for yearly virtual asset gains above 2.5 million won.
This is important as the confirmation offers exchanges and traders a more defined timetable—the policy has been postponed numerous times. Under a formal system, it also implies that crypto gains would be regarded as taxable income, therefore motivating investors to maintain better records and ready for compliance sooner rather than later.
The most impact for the market could be on trading activity and liquidity, particularly if retail participation drops as taxes become more clear. Investors still have time to get ready, but the countdown has already begun for income generated in 2027—the first filing is projected in May 2028.
