Korea's 2027 crypto tax — what crypto card users should know
Under Korea's current Income Tax Act, income individuals earn from transferring or lending virtual assets will be taxed from 1 January 2027. This page summarises the structure objectively and explains how crypto card use can connect to it. It applies to Korean tax residents.
As of 11 October 2026 · Sources: Income Tax Act, reports on the 2026 tax reform, National Tax Service guidance. Subject to legislative change.
At a glance
| Item | Details |
|---|---|
| Start date | 1 January 2027 (postponed three times: 2022 → 2023 → 2025 → 2027) |
| Taxable | Income from transferring or lending virtual assets (including coin-to-coin swaps) |
| Method | Separate taxation as other income |
| Deduction | ₩2.5 million a year (on net annual gains) |
| Rate | 20% + 2% local income tax = 22% |
| First tax year | 1 January – 31 December 2027 |
| First filing | May 2028 (comprehensive income tax season) |
| Cost-basis rule | For assets held before 2027, the higher of actual cost or market value on 31 December 2026 |
| Loss carry-forward | Not allowed (gains and losses offset within the year only) |
How the tax is calculated
(annual proceeds − cost − expenses − ₩2.5M) × 22%
- Add up the year's disposalsSales, coin swaps and lending income.
- Deduct cost and feesFor pre-2027 holdings, compare with the 31 Dec 2026 market value.
- Offset gains and lossesWithin the same year; losses do not carry forward.
- Deduct ₩2.5MFrom net gains.
- Apply 22%Example: ₩10M net gain → (₩10M − ₩2.5M) × 22% = ₩1.65M
Crypto cards and the tax
Selling or swapping coins to fund a card
Converting bitcoin or other volatile coins into card balance or stablecoins may be treated as a transfer at that moment. If the value is above your purchase price, the gain may enter the calculation.
Stablecoins are also virtual assets for tax purposes; gains are small but records still matter.
Tax treatment of card cashback
We found no published, settled interpretation of how cashback paid in USD, stablecoins or tokens is classified. For large amounts, consult a tax professional.
Overseas accounts and foreign financial account reporting
Since 2023 virtual assets are included in Korea's foreign financial account reporting. If the total balance of overseas accounts (including overseas exchanges and wallet providers) exceeds ₩500 million on the last day of any month, you must report the following June; failure can incur fines.
Whether an overseas crypto card account counts depends on its nature; check NTS guidance.
What to prepare now
Download deposit, withdrawal and swap histories from exchanges and card apps by year. Keeping holdings and market-value records as of 31 December 2026 helps with the cost-basis rule.
Crypto tax FAQ
Is holding coins taxed?
No. Tax arises when you transfer (sell, swap) or lend and earn income.
Can losses offset next year's gains?
Not under current rules; only within the same year.
Do I need to worry if I only use Korean exchanges?
The taxable transactions are the same. With overseas exchanges or cards you may need to gather records yourself.
Is every crypto card payment taxed?
Not the payment itself, but gains from transferring or swapping assets to fund it may be included. Consult a professional for your structure.
Could the start be delayed again?
The government intends to proceed, but delay/abolition bills mean the year-end legislative outcome must be watched.