Deputy Prime Minister Nominee Lee Hyoung-il Says 2027 Crypto Tax Will Likely Leave Most Investors With Limited Burden

Lee Hyoung-il, South Korea’s nominee for deputy prime minister and finance minister, said many investors are likely to face only a limited tax burden when the country begins taxing virtual assets, or cryptocurrencies, in 2027.

Edaily reported on September 15 that Lee made the remarks at a parliamentary confirmation hearing when asked whether there was a need to delay the crypto tax by another two years. He said the National Assembly had already postponed the schedule after discussions in 2024 and set implementation for 2027.

Lee cited data showing that 85% of domestic virtual-asset investors hold less than 5 million won in assets. Taking into account how acquisition costs are calculated, standards for recognizing deductible expenses and the annual basic deduction of 2.5 million won, the taxable amount for many investors may not be large, he said.

He added that if investors have difficulty proving acquisition costs, a method allowing part of the gains to be recognized as deductible expenses could apply, which may keep their actual tax burden limited.

"The shock from starting crypto taxation now would not be as large as some expect," Lee said. He added, however, that the issue still leaves room for further review and that related discussions need to continue in a National Assembly subcommittee.