Key Takeaways
- Moon Kyung-ho of the Finance Ministry confirmed virtual asset taxation will begin on Jan. 1 next year.
- Over 13.26 million investors face a 22% tax on virtual asset gains exceeding 2.5 million won.
- The NTS is drafting final notices, with major exchanges like Upbit and Bithumb to be released in 2026.
Official Stance on Implementation Timeline
A top South Korean finance official reportedly confirmed that the government intends to begin taxing virtual assets in January as originally scheduled, marking the first time the Ministry of Economy and Finance has publicly formalized its stance on the timeline. Moon Kyung-ho, director of the ministry’s income taxation division, told an emergency forum at the National Assembly that the government is moving forward with the plan despite ongoing debate over potential delays.
“We will proceed with virtual asset taxation as scheduled in January next year,” Moon said during the forum, which was hosted by Rep. Park Soo-young of the People Power Party and the Korea Tax Policy Association.
Under the current Income Tax Act, gains from the transfer or lending of virtual assets will be classified as “other income” starting Jan. 1. A total tax rate of 22%—consisting of a 20% income tax and a 2% local income tax—will be applied to annual crypto earnings exceeding $1,850 (2.5 million won).
The policy is expected to impact a massive base of retail investors. Government data indicates there are roughly 13.26 million virtual asset investors in the country, a figure based on cumulative membership at Upbit, South Korea’s largest exchange, as of last December.
Moon noted that the National Tax Service (NTS) is currently finalizing the technical framework for tax collection.
“The National Tax Service is currently preparing a relevant notice,” Moon said. “They are coordinating at a practical level by holding several meetings with the five major virtual asset operators—Dunamu, Bithumb, Coinone, Korbit, and Gopax—to prepare the draft.”
While Moon initially told forum attendees the notice would be disclosed “soon,” he later clarified his remarks to reporters to avoid suggesting an immediate release.
“The expression ‘soon’ could be misunderstood as if it would be released tomorrow or the day after,” Moon said. “The National Tax Service notice is scheduled to take effect sometime this year.”
According to a local report, the confirmation of the January start date comes amid a push from some political circles and investor groups to further postpone the tax, citing concerns over market volatility and the need for a more robust regulatory infrastructure. However, the ministry’s latest comments suggest the executive branch remains committed to the current legislative roadmap.
Source: https://news.bitcoin.com/south-korea-pushes-22-crypto-tax-on-gains-above-1850-starting-in-january/
