South Korea Crypto Taxes 2026: Complete Guide

Crypto Taxes in South Korea: The Complete 2026 Guide

 

Quick Summary

South Korea has postponed the implementation of its dedicated digital asset tax regime until at least 2026, but crypto activity is still subject to several existing tax laws. While a specific capital gains tax on digital assets is pending, crypto earnings may fall under other tax categories such as income tax, business income, or inheritance and gift tax. The National Tax Service (NTS) continues to expand oversight through compliance reporting and exchange-level regulation.

 

How South Korea Classifies Cryptocurrency for Tax Purposes

 

Crypto as a Taxable Asset Class

Although the full digital asset capital gains framework is not yet active, crypto is recognised as a taxable asset under Korea’s Income Tax Act, Gift Tax Act, and Corporate Tax Act. Classification depends on the type of activity, the taxpayer’s profile, and the economic substance of transactions.

 

Key Legal Framework

The following regulations govern crypto taxation in South Korea:

• Income Tax Act – applies to personal earnings from crypto-related activities
• Corporate Tax Act – governs taxation for businesses dealing in crypto assets
• Inheritance and Gift Tax Act – covers crypto transfers as gifts or inheritances
• NTS guidelines – provide interpretation and reporting rules

 

Taxable Crypto Events in South Korea

 

1. Crypto Trading (Future Regime)

The digital asset capital gains tax—delayed until 2025—will impose a tax on net crypto gains once implemented. Although not yet in force, the expected structure includes thresholds and capital gains categories similar to other financial assets.

 

2. Income from Staking, Mining, and Rewards

Crypto earned through staking, mining, or platform rewards may be taxable as other income (gita sotaek) or business income depending on the scale and nature of the activity.

 

3. Crypto as Payment for Goods or Services

When individuals or businesses receive crypto as compensation, its fair market value must be reported as taxable income.

 

4. Gifts and Inheritance

Crypto transferred as a gift or inheritance is subject to the Inheritance and Gift Tax Act. Taxpayers must declare the fair market value and comply with relevant filing requirements.

 

5. Business-Level Crypto Activity

Companies dealing in crypto—such as exchanges, mining operations, and custodians—are taxed under the Corporate Tax Act. All crypto inflows and outflows must be accounted for in financial statements.

 

Crypto Tax Rates in South Korea

 

Income Tax on Crypto Earnings

Income derived from crypto falls under individual income tax brackets if treated as:

• Other income (occasional or irregular earnings)
• Business income (large-scale, frequent, or commercial activity)

Income tax rates in Korea range from:

• 6% to 45% (national income tax)
• Plus local income tax (10% of national tax liability)

 

Corporate Tax

Businesses pay corporate tax based on taxable income, with rates ranging from 10% to 25% depending on income tiers.

 

Gift and Inheritance Tax Rates

Crypto gifted or inherited is taxed at progressive rates up to 50%, depending on the relationship and taxable value.

 

Reporting Requirements for Crypto in South Korea

 

Income Tax Filing

Taxpayers must declare crypto-related income in their annual tax return. Korean residents are taxed on worldwide income, which includes foreign exchange or wallet activity.

 

Exchange Reporting Obligations

Registered Korean exchanges must comply with reporting rules under the Act on Reporting and Using Specified Financial Transaction Information, helping the NTS monitor crypto flows.

 

Record-Keeping Requirements

Taxpayers should maintain:

• Transaction logs
• Exchange reports
• Wallet movement history
• Valuation data in KRW
• Staking or mining reward details

 

How Losses on Crypto Are Treated

 

Losses Under Current Rules

Because the dedicated capital gains regime is not yet implemented, rules on loss offsets are not formalised for individuals. Future legislation is expected to define loss carryover and offset provisions when the digital asset tax goes into effect.

 

Special Cases: NFTs, Airdrops & DeFi

 

NFT Transactions

NFT earnings may be taxed as income if sold or exchanged. Future digital asset reforms may introduce dedicated treatment for NFT gains.

 

DeFi Activity

Income from DeFi protocols—including rewards or interest—may be subject to income tax if considered economic gain.

 

How to Prepare Crypto Taxes in South Korea

 

Tracking Transactions

Accurate tracking is essential due to complex categorisation rules. Crypto tax software with Korean won (KRW) valuations can help maintain compliant accounting records.

 

Using Crypto Tax Tools for Korea

Several crypto platforms offer partial support for Korean tax requirements, especially for individuals tracking staking or trading income ahead of the future capital gains regime.

 

Penalties for Non-Compliance

 

Failure to report crypto income or gifts may result in penalties, interest charges, and audits. The NTS has increased enforcement through data-sharing agreements and exchange reporting laws.

 

Conclusion

 

South Korea’s crypto tax system is evolving. Although the dedicated capital gains tax regime is delayed, income tax, business tax, and gift/inheritance tax rules already apply. Investors and traders must maintain thorough records and stay informed about upcoming regulatory changes.

 

References / Sources

 

• Koinly – South Korea Crypto Tax Guide
• Forkast – South Korea Crypto Tax Overview
• National Tax Service (NTS) – Official Tax Guidance
• Korean Law Database – Tax Legislation