South Korea Plans 2027 Crypto Tax and New Stablecoin Regulations

Highlights:

• South Korea plans to begin taxing crypto gains next year after delaying the policy three times.
• Investors will receive a 2.5 million won deduction before a 20% tax applies to additional gains.
• Officials are also preparing stablecoin, exchange, disclosure, security, and anti-money laundering rules for digital assets.

South Korea plans to begin taxing cryptocurrency gains in 2027 while developing broader rules for digital assets and stablecoins. Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol said the government currently expects the delayed crypto tax to take effect as scheduled next year.

Koo made the comments during a National Assembly Strategy and Finance Committee meeting on July 29, according to South Korean news outlet Digital Asset. He said the government would first introduce the tax in 2027 and review possible improvements after its implementation.

🚨SOUTH KOREA CRYPTO TAX CONFIRMED FOR 2027!

Finance Minister Koo Yun-cheol confirmed the long-delayed crypto tax will start January 1, 2027, no more postponements.

Annual gains over KRW 2.5 million (~$1,800) face a 20% tax, 22% with local taxes.

Originally due years earlier,… pic.twitter.com/BxpVxBmmql

— Crypto Banter (@crypto_banter) July 30, 2026

South Korea Keeps January 2027 Crypto Tax Date

Under the current Income Tax Act, South Korea’s cryptocurrency tax is due to start on January 1, 2027. Investors will receive a basic annual deduction of 2.5 million won. Gains above that amount will face a 20% tax rate, rising to as much as 22% when local taxes are included. The policy was originally scheduled to take effect on January 1, 2022. However, lawmakers delayed it three times because the country lacked sufficient tax infrastructure for digital assets.

During the meeting, People Power Party lawmaker Kim Sang-hoon raised concerns about the treatment of crypto investment losses. He warned that the lack of loss carryforward rules could weaken domestic investment and encourage capital to move overseas. Loss carryforward allows investors to use losses from one year to reduce taxable gains in later years. Koo said the government could examine the issue after the crypto tax takes effect.

However, he added that placing digital assets under a capital gains tax system would require a wider and more detailed review of South Korea’s entire capital market.

Stablecoin and Digital Asset Rules Move Forward

South Korea is also preparing new rules for the wider cryptocurrency market. In a separate report published on July 29, Edaily Marketin said the Financial Services Commission (FSC) plans to introduce a combined bill covering stablecoins and the second phase of the Digital Asset Basic Act.

FSC Chairman Lee Eog-weon said the regulator aims to complete the legislation within 2026. The planned framework will cover the digital asset industry, market operations and user protection. Proposed rules are expected to define digital asset businesses, regulate their conduct and create a formal system for stablecoin issuance and circulation. The bill may also introduce entry requirements for cryptocurrency exchanges and disclosure rules for token issuance and distribution.

In addition, the FSC wants crypto companies to meet internal control and computer security standards similar to those followed by traditional financial institutions. Stronger anti-money laundering rules are also part of the government’s policy agenda.

However, several details remain unsettled. The government has not confirmed when the combined bill will be introduced or what its final wording will include. Lawmakers are still discussing key issues, including which companies should be allowed to issue won-backed stablecoins. They are also considering whether ownership limits should apply to major South Korean crypto exchanges.