Korea Faces Fresh Crypto Tax Chaos as 2027 Deadline Nears
South Korea's protracted struggle to implement a VIRTUAL asset tax regime faces renewed uncertainty as the January 2027 deadline approaches. Despite five years of political wrangling and technical preparations, critical infrastructure and regulatory clarity remain absent. The tax law, initially passed in 2020, has already been delayed three times—from 2022 to 2023, then 2025, and now 2027.
Analysts warn that Korea lags behind regional counterparts like Japan, which recently classified over 100 cryptocurrencies as financial products subject to a 20% tax rate. Korea's proposed 22% levy on annual gains exceeding 2.5 million won ($1,800) remains in limbo due to unresolved operational frameworks. Kim Kab-lae of the Korea Capital Market Institute describes the repeated postponements as "unprecedented" among major economies.
