Personal wallet and overseas exchange crypto asset income will be taxed, South Korean government says implementation begins in 2027

Odaily News: In response to lawmakers' inquiries, South Korea's Ministry of Economy and Finance and the National Tax Service stated that crypto asset income will be classified as other income, subject to a deduction of 2.5 million KRW and a 20% tax rate, with a maximum rate of 22% after including local taxes. The relevant regulations will take effect on January 1, 2027. The National Tax Service acknowledged practical difficulties in tracking personal wallet transactions and will introduce transaction tracking and analysis programs to prevent taxation gaps. Information on overseas exchanges will be collected through the foreign financial account reporting system and the crypto asset automatic information exchange system. Regarding income from staking, lending, airdrops, and hard forks, the two agencies stated that they are separately developing taxation standards and noted difficulties in reasonably estimating the scale of tax revenue.