The Republic of Korea is preparing to tax virtual assets starting from 2027

The Republic of Korea is entering a critical phase of digital asset regulation. The National Budget Office of Korea (NABO) has launched a comprehensive study focused on tax frameworks for virtual assets, which are becoming an increasingly important part of the financial ecosystem. The research comes as the country prepares to transform its approach to regulating these new forms of assets.

NABO Launches Extensive Analysis of the Regulatory Environment

The National Budget Office of Korea has initiated an interdisciplinary study aimed at thoroughly assessing the current state of tax regulations for virtual assets. The research focuses on an in-depth analysis of the regulatory environment, with a team of experts examining the legal and economic characteristics of digital assets in the context of international standards. The study is based on data and analyses provided by the NS3.AI institution.

Tax Plan: 22% Rate to Be Implemented from January 2027

South Korea plans to introduce a flat 22% capital gains tax on transactions involving virtual assets. This tax framework is set to be officially implemented on January 1, 2027, making Korea one of the countries with clearly defined tax rules for the digital asset sector. The rate has been designed to create a fair tax system that reflects the nature of these investments.

Research Focuses on Standards and Non-Standard Transactions

The study concentrates on three key areas. The first goal is to review existing legal and economic frameworks related to virtual assets. The second is to evaluate how non-standard transactions and complex operations in this sector should be taxed. The third element is to develop unified internationally recognized tax standards for digital assets that could serve as a model for other countries.

Korea’s preparations for taxing virtual assets next year signal a serious move toward regulation in this dynamic sector.