Bitcoin in South Korea: rules, tax and how it's priced
In South Korea bitcoin is quoted in won per 1 BTC (BTC/KRW), a figure that runs to tens of millions of won, so most buyers purchase a fraction of a coin. The figures on this page are the international BTC/USD price converted at today's USD/KRW exchange rate, before exchange fees and spreads. Prices on Korean won exchanges sometimes sit above or below the international price, a gap known as the "kimchi premium".
Is bitcoin legal in South Korea?
Yes. Buying, holding and selling bitcoin is legal, but it is not legal tender. Under the Act on Reporting and Using Specified Financial Transaction Information, crypto exchanges must report to the Korea Financial Intelligence Unit (KoFIU), hold information security (ISMS) certification and, to offer won trading, use real-name bank accounts so every customer's won deposits come from a verified account in their own name. The Virtual Asset User Protection Act took effect on 19 July 2024. It requires exchanges to keep customer cash with banks, hold at least 80% of customer crypto in cold wallets and carry insurance or reserves against hacks. It also bans market manipulation and insider trading, with heavy criminal penalties. A broader Digital Asset Basic Act, including rules for won stablecoins, was still under discussion in October 2026.
How crypto will be taxed from 2027
South Korea does not yet tax individuals' crypto gains. A tax on virtual asset income has been postponed three times and is scheduled to start on 1 January 2027. Gains from transferring or lending crypto above KRW 2.5 million a year would be taxed separately as "other income" at 20%, or 22% including local income tax, with the first returns due in May 2028. In 2026 the government said it would go ahead as planned. Lawmakers from the opposition People Power Party filed bills to delay the tax again, to 2029 or 2030, or to abolish it, and in September 2026 a senior figure in the ruling Democratic Party also called for a delay until the Digital Asset Basic Act is passed. In October 2026 the start date still depended on the National Assembly. Korea will also start exchanging crypto account data with other countries under the OECD Crypto-Asset Reporting Framework from 2027.
Buying bitcoin in South Korea
Koreans buy bitcoin with won on exchanges registered with KoFIU, linking a real-name account at the exchange's partner bank. Offshore exchanges that are not registered may not market their services to Korean residents. Because money flows in and out of Korea are controlled, won prices on local exchanges can drift above or below the international price, so the kimchi premium can be positive or negative on any given day. Check the final won amount after fees on your exchange, and remember that the converted price shown here is only a guide.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.