22% Crypto Tax Starting Next Year? What Investors Must Prepare Before Taxation | Seo Dong-ju, Kim Dong-hwan, Lee Jang-won, Rich Tax Accountants

Summary

Tax accountant Lee Jang-won discusses Korea's planned 22% virtual asset tax, the legislative outlook, and practical preparation for crypto investors. He highlights likely continued taxation, incomplete tracking infrastructure, possible capital flight from domestic exchanges, and tax inefficiencies relative to physical gold and domestic stocks. The discussion focuses more on policy risk and compliance preparation than on direct buy/sell recommendations.

• Korea's crypto tax is scheduled for 2027 and is not part of the current tax revision package, so a separate legislative change would be needed to delay or alter it.
• The basic taxation rule is gain minus acquisition cost minus a 2.5 million won deduction, taxed at 22% as separately taxed miscellaneous income.
• The National Tax Service system relies on data from domestic exchanges such as Upbit, Bithumb, and Korbit, creating incentives to move to overseas exchanges, DEX, or P2P markets.
• The speaker argues for a higher basic deduction, loss carryforward/carryback, and clearer classification of staking and DeFi income.
• Physical gold is effectively tax-free on long-term gains, while crypto gains face 22% tax, creating a tax disparity favorable to gold.
• Korean domestic stocks are described as tax-free for many retail investors, unlike overseas stocks and crypto gains after small deductions.
• Crypto investors are advised to retain acquisition-price evidence because the burden of proof is on the taxpayer.