Crypto holders in South Korea—this is the end! Taxes are about to start!

Brothers, South Korea has confirmed that starting January 2027, a 22% tax will be levied on the portion of annual cryptocurrency gains exceeding 2.5 million won (about $1,870), with an expected impact on roughly 13.26 million investors (nearly 1/4 of the population).

From the data side, South Korea is one of the world’s most active crypto markets. With such a wide tax coverage area and a 22% tax rate that’s higher than stock tax burdens, short-term speculation costs will be directly pushed up. Taking the precedent of Japan where heavy taxation led to a contraction in liquidity, South Korea’s domestic high-frequency coin trading and aggressive leveraged funds will likely lock in profits, reduce trading frequency, and even shift to overseas platforms/DEX—so domestic exchange activity will inevitably face pressure.

On the news side, this “certain taxation” will suppress short-term risk appetite and force capital to “de-leverage and de-speculate.” The conclusion is straightforward: this new rule from South Korea has poured cold water on the market. Short-term sentiment will be hit, and future trading must bake tax costs into the models.

In South Korea 🇰🇷, it’s basically one out of every four people who trades crypto. This is thanks to the country’s powerful chaebols and their control over the nation, which has led Korean youth to love trading crypto—they think they can turn their fortunes around, escape this suffocating country, or break free from chaebol control in every aspect.

South Korea 🇰🇷 has started collecting taxes—how far behind are the East Indies?
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