South Korea Sets 2028 Crypto Tax Filing Plan for Investors

South Korea is entering the final stage of its multi-year effort to tax digital assets. Following three legislative delays, the National Tax Service (NTS) confirmed this week that systems are being fast-tracked to support a 2027 enforcement launch and a May 2028 filing debut.

Park Jeong-yeol, Director General of the Individual Taxation Bureau, confirmed the timeline during a briefing in Sejong. He said, “Since a law has been enacted to tax virtual asset income generated starting next year, we are preparing to accept filings starting with the 2028 (May) Comprehensive Income Tax filing.” As a result, the agency is aligning legal requirements with infrastructure development and taxpayer guidance to ensure a smooth rollout.

Building the crypto tax framework

The finalized tax framework will target income from trading and lending digital assets, bringing crypto earnings into the “other income” category under existing law. Profits exceeding 2.5 million KRW will face a 22% tax, combining national and local levies. As a result, about 13.26 million investors could fall within the reporting scope, marking one of the region’s broadest crypto tax nets.

In addition, the National Tax Service will collect transaction records directly from leading exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax. The government is even designing criteria for calculating gains specifically for the cryptocurrency market, which is different from the stock market. Engineers have been working on connecting the system of the exchange with Hometax.

Surveillance expands beyond trading

South Korea is expanding its crypto oversight beyond trading, now focusing on real estate deals funded with digital assets. Authorities are building an “Integrated Virtual Asset Analysis System” to track where the money comes from and how it moves during property purchases. The goal is clear. Regulators want to spot undeclared income and hidden transfers tied to crypto use.

The system will also connect to overseas data to strengthen monitoring. South Korea expects to receive crypto transaction data from 56 countries under the Crypto-Asset Reporting Framework in 2027. Officials also plan to add overseas property records by 2030. This approach will give authorities a wider view of cross-border financial activity and potential tax gaps.

The rollout is facing a pushback, with the Washington-based Cato Institute raising concerns over unclear rules on staking rewards and other forms of crypto income. The researchers argue that tighter taxation could also drive some investors toward offshore platforms.

At the same time, enforcement is tightening in other jurisdictions. India, for example, has issued notices related to unreported crypto income, underscoring a broader global shift toward stricter oversight of digital assets.

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