Korea Crypto Tax: What Will Change in 2027?

11 minutes ago
3 min read

Korea Crypto Tax: What Will Change in 2027?

“If I sell my cryptocurrency for a profit, will I have to pay tax in Korea?”

This is an important question for foreigners living and investing in Korea.

Korea’s taxation system for income from virtual assets is scheduled to take effect on January 1, 2027.

The implementation has been postponed several times, including another two-year postponement through tax legislation enacted in December 2024.

Under the current rules, income from the transfer or lending of virtual assets on or after January 1, 2027 will be subject to separate taxation as other income.

What Will Change From 2027?

Starting January 1, 2027:

Income from the transfer or lending of virtual assets will be taxable.
This income will be classified as other income, rather than ordinary capital gains.
An annual KRW 2.5 million basic deduction will apply.
The income tax rate is 20%.
Local income tax will also apply.

For example, if you purchase cryptocurrency and later sell it at a higher price, the taxable income will generally be calculated by taking into account the acquisition cost and allowable expenses.

The actual tax amount may vary depending on your transaction history and the specific tax rules applicable to your situation.

What About Cryptocurrency You Already Own Before 2027?

For investors who already hold cryptocurrency, it is important to understand how the acquisition cost will be determined.

For virtual assets acquired before January 1, 2027, special deemed acquisition price rules will apply.

Generally, the tax acquisition cost is determined based on the higher of the actual acquisition cost or the market value as of December 31, 2026, subject to the applicable rules.

Therefore, existing investors should keep accurate records of their purchase prices and transaction history before the new taxation system takes effect.

A Tax Planning Point: Check the Deemed Acquisition Price

With cryptocurrency taxation scheduled to begin in 2027, existing investors should consider reviewing the deemed acquisition price rules in advance.

For virtual assets acquired before January 1, 2027, it is important to determine which amount will be recognized as the acquisition cost under the applicable tax rules when calculating future taxable income.

Because the deemed acquisition price rules can affect the amount of crypto gains subject to taxation after the new system begins, understanding how these rules apply to your existing holdings can be an important part of tax planning.

If you currently hold cryptocurrency, it is a good idea to organize your acquisition records and transaction history and review the value of your assets as of the end of 2026.

However, the application of the deemed acquisition price rules can vary depending on factors such as the timing and details of your transactions. Before making specific tax-planning decisions, we recommend having your situation reviewed by a qualified tax professional.

Need Help With Crypto Tax in Korea?

If you hold cryptocurrency or are planning significant transactions before the new tax system takes effect, it may be worthwhile to review your tax position in advance.

For foreigners living in Korea, we recommend consulting a qualified tax professional to review your tax residency, transaction history, and cryptocurrency acquisition costs.

A tax professional can help you understand the new taxation system and prepare for future tax filing requirements while considering legitimate tax-planning opportunities that may apply to your individual situation.

Getting professional advice before the new crypto tax system takes effect can help you prepare properly and avoid unexpected tax issues.