South Korea Confirms 22% Crypto Tax for 2027 as Exchange Volume Slumps 54.6%

3 articles · Updated · Yahoo Finance · Aug 1

Annual crypto gains above 2.5 million won ($1,740) will face a 22% combined tax from 2027, with first returns due in May 2028, Finance Minister Koo Yun-cheol told lawmakers.
The government is pressing ahead even as South Korea’s five main exchanges logged about $366.58 billion in first-half trading volume, down 54.6% from a year earlier, with July volume another 16.9% below June.
Opposition lawmaker Kim Sang-hoon said the tax could drive traders to overseas exchanges, decentralized platforms or peer-to-peer markets because losses cannot be carried forward to offset future gains.
A separate opposition bill filed in March would remove crypto income from the Income Tax Act entirely, leaving repeal or another delay still legally possible after earlier postponements from 2022 to 2025 and then 2027.
The downturn is also concentrating the market: Upbit’s July share rose to 67.4% despite a 10% volume drop, while Bithumb’s share fell to 27.1%.