South Korea plans to tax more than $1740 in cryptocurrency gains

On July 30, as the political game moves to Congress, South Korea plans to tax more than $1,740 in cryptocurrency gains. South Korea will impose a 22% tax on cryptocurrency gains exceeding 2.5 million won (approximately US$1,740) starting January 1, 2027; the gains will be classified as "other income" and losses will not be allowed to be used to offset gains. The measure, originally scheduled to be implemented in 2022, is now being advanced in Congress, although proposals to repeal the bill currently exist in a subcommittee. Critics point out that the move could lead to capital outflows to overseas exchanges. Setting a lower tax threshold demonstrates the government's determination, but also highlights the challenges it faces in enforcing the law and maintaining market competitiveness.