South Korea Crypto Tax Guide 2026

South Korea has postponed its virtual-asset income-tax regime to 1 January 2027. The planned regime would tax gains above the annual basic deduction at 20%, plus 2% local income tax. In August 2026, a legislator introduced a bill proposing a further delay to 2030. A proposal does not change the operative date until it passes, so investors should plan against the enacted timetable and check NTS guidance before filing.

Under the planned regime, virtual-asset gains above ₩2.5 million in a tax year would face 20% national tax and 2% local income tax. The tax base would be disposal proceeds less acquisition cost and necessary expenses. The August 2026 proposal would delay this regime, not alter those core parameters. Taxxy will update this guide when the National Assembly changes the law.

South Korea uses the FIFO (First In, First Out) or the moving average method for cost basis calculation, with taxpayers required to choose one method and use it consistently. The cost basis includes the purchase price plus any transaction fees, gas fees, and other acquisition costs. If the acquisition cost cannot be determined (e.g., for very old purchases), the NTS may allow the use of the market value on a specified prior date as a deemed acquisition cost. All calculations are performed in KRW.

The National Tax Service updated its capital-gains filing guidance in August 2026. Keep exchange exports, wallet addresses, KRW values at each acquisition and disposal, fees, and records supporting your cost basis. This is a general filing update, not a new crypto-tax rule. Investors with Korean tax obligations should confirm the applicable return and deadline with the NTS or a Korean tax adviser.

Staking rewards and mining income are treated as virtual asset income (not as separate business income) for individual investors. They are valued at the KRW fair market value when received, which becomes the cost basis for future disposal. If mining is conducted as a business, separate business income taxation may apply. Airdrops and hard fork tokens are taxable at their fair market value when they become tradeable. DeFi yields and lending interest are similarly classified as virtual asset income.

Taxxy calculates crypto gains using FIFO and tracks the ₩2.5 million basic deduction. All values are converted to KRW using historical exchange rates. The platform generates income calculations compatible with NTS reporting requirements, separating domestic exchange gains (subject to withholding) from foreign exchange gains (requiring self-reporting). Taxxy also aggregates transactions across multiple exchanges for accurate annual gain calculations.