South Korea will begin taxing cryptocurrency income on Jan. 1 at a 20% national rate after annual gains and losses are netted and a 2.5 million won deduction is applied, producing an effective rate of 22% including local income tax. Stablecoin gains become taxable when USDT is converted to won, exchanged for another cryptocurrency or used to buy goods and services. The finance ministry said classifying virtual asset income as miscellaneous income was intended to provide a taxpayer-friendly regime and reduce disputes through comprehensive taxation, rather than reflecting an unclear legal status. Losses cannot be carried forward, while taxpayers must generally prove acquisition costs; for assets acquired on or before Dec. 31, 2026, the market price on that date may be used when costs are difficult to verify, and for assets acquired from 2027 onward, 50% of the transfer value may be recognized when objective documentation is unavailable. USDT traded on Upbit at an average 1.09% premium to overseas prices from June 19, 2024, through the 10th of the reported month, reaching 8.55%, with domestic prices higher on 599 of 814 days.