Korea proposes to tax virtual asset transfers and borrowing from 2027 onwards

according to the korea electronic news report, the republic of korea plans to tax virtual asset transfers and borrowings from 1 january 2027, with a net annual income of 2.5 million won less, the excess tax is levied at 20 per cent and the actual tax rate after local income tax is 22 per cent. at the forum for the review of the 2027 virtual asset tax system, on 3 september, a number of experts expressed the view that the current system of uniform classification of different types of crypto proceeds as “other income” no longer reflected market realities. the president of the korean institute of tax law, park jong-soo, suggested that in the future, the proceeds of transactions could be classified as capital gains, the proceeds of borrowing as interest income, the share of proceeds as dividends, commercial mining as operating income, and the complex transactions of pledge and liquidity provision should be taxed separately from the nature of the income. the current crypto tax system in korea has been extended three times since its introduction in 2020, but the basic framework has remained unchanged。