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South Korea to Tax Virtual Asset Income From Jan. 1

A finance ministry official reaffirmed South Korea’s plan to impose a 22% tax on virtual asset gains above 2.5 million won from Jan. 1, though the opposition is seeking a delay or repeal.

Summary

South Korea is still scheduled to begin taxing virtual asset income on Jan. 1 at a combined 22% rate on gains above 2.5 million won. A finance ministry official reiterated the timeline at a National Assembly forum. The opposition People Power Party is pushing legislation to delay or abolish the tax, adding political uncertainty to the planned rollout. Under the policy, taxable crypto-related gains are treated as other income, and the measure is expected to affect about 13.26 million investors.

Terms & Concepts
  • virtual asset income: Profits derived from digital assets such as cryptocurrencies, including gains that may be subject to taxation under local law.
  • other income: A tax category for income that does not fall under primary classifications such as salary or business income.
  • tax threshold: The minimum amount of profit or income above which a tax obligation begins to apply.