South Korea confirms 22% crypto tax will cover private wallets, foreign exchanges

South Korea has confirmed that taxable crypto income earned through overseas exchanges and private wallets will fall under its planned 22% digital asset tax when the regime takes effect on Jan. 1, 2027. Summary South Korea will tax crypto income from private wallets and overseas exchanges from 2027. Digital asset income above the 2.5 million won deduction will face up to 22% tax. Authorities acknowledged that tracking unreported private wallet transactions remains difficult. Tax rules for staking, lending, airdrops and hard forks are still under review. Digital Asset reported on Aug. 20, citing government responses submitted to People Power Party lawmaker Kim Sang-hoon, that the Ministry of Economy and Finance and the National Tax Service said the location or custody method of a digital asset would not determine whether income from its transfer or lending is taxable. Under the current framework, income from digital assets will be classified as other income, with an annual basic deduction of 2.5 million won. Income exceeding that threshold will face a 20% national tax, rising to a maximum combined rate of 22% after local income tax. The government also maintained that the tax should...