South Korea will begin taxing virtual assets starting January 1, 2027, as part of a new initiative by the National Tax Service. Income from the transfer and leasing of virtual assets will be classified as "other income" and subject to a 22% tax rate. This includes a 20% other income tax and a 2% local income tax on annual gains exceeding 2.5 million KRW. The move is expected to impact approximately 13.26 million taxpayers, with preparations for the tax implementation set to begin in January 2026 to ensure a smooth process for the 2028 comprehensive income tax filing.