When will South Korea start taxing virtual asset gains, and what rate will apply?

Gains from the transfer or lending of virtual assets will become taxable on Jan. 1, 2027. Profits above 2.5 million won will face a 22 percent tax rate, including local taxes, with first filings due in May 2028.

Why are crypto investors opposing the planned digital asset tax in Korea?

Critics say the tax is unfair because the government scrapped the financial investment income tax on stock gains in December 2024 after strong retail opposition. They also argue that taxing crypto without enough investor protections and international standards could discourage investment and weaken the domestic industry.

What happens if the petition against Korea’s crypto tax reaches 50,000 signatures?

If the petition surpasses 50,000 signatures by June 12, it will be referred to a parliamentary committee for review. The petition had already passed 45,000 signatures within a week of being posted on May 13.

Planned crypto tax rollout faces growing investor backlash

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Summary

Crypto investors are mounting backlash against South Korea’s planned digital asset tax, which is still scheduled to begin on Jan. 1, 2027. A National Assembly petition to abolish the tax passed 45,000 signatures within a week and could go to committee if it reaches 50,000 by June 12. The tax would apply a 22 percent rate, including local taxes, to gains above 2.5 million won, with first filings in May 2028. Critics say the plan could discourage investment and weaken the domestic crypto industry.

Key Facts

The taxation plan applies to gains from the transfer or lending of virtual assets starting Jan. 1, 2027.
Profits above 2.5 million won will be taxed at 22 percent, including local taxes, and the first filings are scheduled for May 2028.
The original start date was January 2025, but it was delayed by two years after a bipartisan agreement in December 2024.
A petition seeking abolition of the planned crypto tax had gathered more than 45,000 signatures as of 3 p.m. Wednesday after being posted on May 13.
Korea is estimated to have around 13 million virtual asset investors.

By Lee Hyo-jin

Published May 21, 2026 7:00 am KST

Bitcoin prices are displayed on an electronic board at the Bithumb Lounge in Gangnam District, Seoul, March 4. Yonhap

A planned taxation on digital assets set to take effect next year is facing growing backlash from crypto investors, who warn the measure could weaken Korea's digital asset market.

According to the National Assembly's online petition portal, a petition calling for the abolition of the planned crypto tax had gathered more than 45,000 signatures as of 3 p.m., Wednesday, within a week of being posted on May 13.

If the number surpasses 50,000 by June 12, the proposal will be referred to a parliamentary committee for review.

Under the current tax law, gains from the transfer or lending of virtual assets will become taxable starting Jan. 1, 2027. Profits exceeding 2.5 million won ($1,650) will be taxed at 22 percent, including local taxes, with the first filings scheduled for May 2028.

The measures were originally set to take effect in January 2025, but was delayed by two years following a bipartisan agreement reached in December 2024.

Korea is estimated to have around 13 million virtual asset investors, making the country one of the world's largest retail crypto markets.

Critics argue the move to tax digital asset gains is unfair because the government scrapped the introduction of the financial investment income tax on stock gains in December 2024 amid strong opposition from retail investors and concerns over a market downturn.

"This issue goes beyond a simple debate over tax rates and reflects broader concerns about how Korea intends to foster the future digital asset industry," the petition read.

It also argued that taxing crypto assets without sufficient investor protections and international standards in place could discourage investment and weaken the domestic crypto industry.

Some investors have pointed to overseas cases such as the United States, where long-term holdings are taxed at lower rates depending on income levels, as examples of policies designed to encourage investment.

Despite mounting backlash, the government appears set to proceed with the taxation plan as scheduled. Local media reports suggest the Ministry of Finance and Economy has decided not to include another delay to the digital asset tax in its tax revision proposal to be announced in July.

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