South Korean Government Summons Top 5 Exchanges on October 20; Virtual Asset Taxation and Digital Asset Framework Act Advance on Dual Tracks
The South Korean government will hold a forum on October 20 with the top five exchanges, including Upbit and Bithumb, and the DAXA regarding the virtual asset taxation plan effective January 2027. A 22% tax rate is proposed on transfer and lending income exceeding 2.5 million KRW, while the government's Digital Asset Framework Act is expected to be finalized by month-end.
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According to Yonhap News Agency, the South Korean government plans to summon representatives from the top five virtual asset exchanges—Upbit, Bithumb, Coinone, DigitalX, and Gopax—as well as executives from the Digital Asset Exchange Alliance (DAXA) on October 20 to hold an on-site forum regarding the virtual asset taxation plan originally scheduled to take effect in January 2027, to gather industry opinions. Vice Minister of Economy and Finance Kwon Dae-young and Yoo Young-jun, Digital Finance Policy Officer at the Financial Services Commission, will attend.
Under the current proposal, income from virtual asset transfers and lending, after deducting the 2.5 million KRW basic deduction, will be subject to a 22% comprehensive tax rate (including income tax and local income tax). Virtual asset taxation has been delayed three times since its introduction in 2020. The government is currently proceeding with administrative preparations according to the original plan, and the National Tax Service plans to issue relevant notices around November.
Meanwhile, financial authorities are accelerating the government's version of the "Digital Asset Framework Act," which is expected to be finalized by the end of this month and initiate party-government consultations, rapidly advancing through parliamentary legislation. This indicates that South Korea is building a dual-track digital asset regulatory system of "taxation framework + framework act," establishing institutional boundaries for the virtual asset market from both the tax and legal ends simultaneously.
Rhett Insight: South Korea's regulatory pathway carries significant regional signaling importance: first confirming the taxable property nature of virtual assets via the taxation plan, and then establishing market access and operational rules via the framework act. For RWA project owners and digital asset service providers in or entering the South Korean market, tax compliance architecture and licensing arrangements must be planned in advance rather than remedied after legislation is fully implemented.