South Korea Pushes 22% Crypto Tax on Gains Above $1,850 Starting in January
Crypto South Korea Pushes 22% Crypto Tax on Gains Above $1,850 Starting in January 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 ministrys 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
