South Korea’s 20% Tax on Crypto Gains Will Take Effect in 2022: Report

NFTs appear to be exempt from the crypto taxes for now because South Korea does not classify them as “virtual assets.”

AccessTimeIconOct 7, 2021 at 7:40 p.m. UTC
Updated May 11, 2023 at 3:57 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

South Korean Finance Minister and Deputy Prime Minister Hong Nam-ki said his country is moving ahead with its plan to tax gains on cryptocurrency trading starting in 2022, according to a report in The Korea Times.

  • The policy, which will levy a 20% tax on crypto gains of over 2.5 million won (US$2,125) made in a one-year period, was originally supposed to go into effect on Oct. 1, but was delayed due to a lack of taxation infrastructure.
  • A previous proposal in September by the ruling Democratic Party of South Korea to delay the taxation policy until 2023 was abandoned, CoinDesk Korea reported.
  • “Any further delay in the already postponed enforcement will lead to the loss of public trust in government policy and undermine stability in the legal system,” Hong said at a parliamentary audit of the Ministry of Economy and Finance in Seoul on Wednesday, according to the report.
  • NFTs appear to be exempt from the crypto taxes for now, however, because South Korea does not currently classify them as “virtual assets.”
  • Meanwhile, crypto exchanges in South Korea were required to register with local authorities by Sept. 24 or else suspend operations.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Nelson Wang

Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.