Summary
- Changwon National University’s Industry-Academic Cooperation Foundation said crypto staking rewards should be classified as lending under the Income Tax Act, making them taxable.
- Rewards earned through staking and lending are poised to be taxed annually at a 22%% rate.
- Airdrops and hard forks were analyzed as assets acquired without consideration and therefore not subject to taxation.
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South Korea’s planned tax on virtual assets next year is increasingly expected to cover staking rewards as well.
Maeil Business Newspaper reported on May 28 that Changwon National University’s Industry-Academic Cooperation Foundation, in a final report titled “A Study on the Scope of Virtual Asset Taxation and Calculation Methods,” classified crypto staking as “lending” under the current Income Tax Act. That means staking rewards would be subject to tax. Rewards from crypto staking are poised to face an annual 22% tax rate.
The foundation also concluded that lending should be classified as lending under the same framework. It said the appropriate approach is to tax lending fees when they are received.
By contrast, the report said airdrops and hard forks do not qualify as transfers or lending under the current Income Tax Act and can be treated as assets acquired without consideration. It also found they are not subject to tax because it is difficult to identify a specific donor and recipient.
The research was commissioned by the National Tax Service and conducted over five months from November 2025 through March 2026. The government plans to proceed as scheduled with taxation starting in January 2027 on annual virtual-asset gains exceeding 2.5 million won ($1,810).
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
