South Korean Government: Virtual Asset Gains from Personal Wallets and Overseas Exchanges Also Subject to Taxation

The South Korean government stated that digital assets held by residents through personal wallets or overseas exchanges are, in principle, subject to taxation if gains arise from their transfer or lending. The digital asset tax will take effect on January 1, 2027, and will be levied as other income, with a deduction of 2.5 million KRW and a tax rate of 20%, rising to a maximum of 22% including local taxes.\nThe National Tax Service noted that tracking personal wallet transactions faces practical limitations, but it will introduce transaction tracking and analysis programs to prevent tax gaps. Information on overseas exchanges will be collected through the foreign financial account reporting system and the Crypto-Asset Reporting Framework (CARF) for automatic information exchange. For digital assets obtained through staking, lending, airdrops, and hard forks, the government is still studying specific taxation standards.\n\n[TechFlow]