South Korea Considers Educational Tax for Crypto Exchanges

The South Korean government is considering the introduction of an educational tax for cryptocurrency exchanges if they are classified as financial companies under the Basic Digital Assets Act. This was reported by Seoul Economic Daily on October 26: officials recently raised the issue in meetings with exchange executives, but no final decision has been made.

Currently, financial institutions pay a tax of 0.5% on taxable revenue up to 1 trillion won and 1% on amounts above the threshold, even in the case of losses: it is calculated from revenue, not profit. Cryptocurrency exchanges in Korea are classified as information and communication companies and are exempt from the tax. If they are recognized as financial organizations, the rules may change.

According to Seoul Economic Daily, Dunamu's (operator of Upbit) revenue in 2025 amounted to 1.5212 trillion won. Bithumb's was about 651.3 billion won, Coinone's 45.4 billion, DigitalX and Gopax 9.7 billion and 4.3 billion won, respectively. The publication estimates that at current rates, Dunamu could pay about 10.2 billion won per year, Bithumb about 3.2 billion. The estimate assumes the obligation to pay tax and the exemption of trading commissions from VAT; the final amounts may differ.

The proposal emerged as regulators are completing the second phase of cryptocurrency legislation. The Chairman of the Financial Services Commission, Lee Ok Won, informed lawmakers on October 22 that consultations on the law are nearing completion, but a formal submission date has not been announced. In September, the commission expected consideration in the National Assembly subcommittee in November. Open issues include the licensing of service providers, oversight of exchanges, and who will be able to issue stablecoins in won.

Separately, the tax on cryptocurrency profits is being discussed: from January 1, 2027, annual profits exceeding 2.5 million won will be taxed at a rate of 22%. The presidential administration supports the postponement, and ruling party lawmakers propose delaying the introduction to 2029 due to incomplete preparations and difficulties in tracking overseas transactions. The educational tax concerns the revenue of crypto companies, not investors' profits. The National Tax Service is preparing guidelines on staking, airdrops, hard forks, and decentralized finance – their publication is expected in November.