South Korean Deputy Prime Minister and Minister of Finance Koo Yun-cheol confirmed on July 29 that South Korea will levy a 22% tax on cryptocurrency gains starting in 2027, as planned. The tax rate applies to the portion of annual gains exceeding 2.5 million won (approximately $1,740) and consists of a 20% national tax and a 2% local tax. This move comes as trading volume at South Korea’s five largest cryptocurrency exchanges plummeted by 54.6% in the first half of this year, with cumulative trading volume in July also falling by 16.9% compared to June. Opposition lawmakers criticized the tax structure for not allowing investors to offset losses in future years and warned that it could lead to a shift in trading activity to overseas platforms.