South Korea is exploring the possibility of imposing an education tax on cryptocurrency trading platforms, a move that could potentially cost leading operators billions of won annually. Whether this proposal moves forward hinges on how authorities categorize these exchanges under the upcoming Digital Asset Basic Act.
Dunamu, the operator of Upbit, could face an estimated annual liability of 10.2 billion won, whereas Bithumb’s bill would approximate 3.2 billion won. These discussions were highlighted by the Seoul Economic Daily on October 26, which referenced dialogue between government officials and exchange executives. As of now, regulators have not finalized any tax decisions.
Exchange Revenue Could Determine New Tax Bills
South Korean officials brought up the prospect of the tax during recent meetings with the CEOs of local cryptocurrency platforms. A high-ranking official indicated that the government must reevaluate education tax requirements if the forthcoming legislation formally classifies exchanges as financial institutions.
This marks a shift from the stance taken by authorities back in 2018, when they chose to exclude cryptocurrency platforms from the financial sector. Presently, trading and brokerage operations are still categorized under information and communications businesses—a designation that exempts them from the education tax.
At present, financial institutions are subject to a 0.5% levy on taxable operating revenue up to 1 trillion won, and 1% on any amounts surpassing that limit. Because this assessment targets revenue rather than net profit—unlike corporate income tax—a company can incur an education tax liability even if operating expenses result in a net loss.
Based on financial disclosures examined by the Seoul Economic Daily, how would this policy impact the country’s biggest exchanges? In 2025, Dunamu posted 1.5212 trillion won in operating revenue, while Bithumb reported roughly 651.3 billion won.
Meanwhile, Coinone brought in 45.4 billion won, DigitalX posted 9.7 billion won, and Gopax recorded 4.3 billion won. The publication projected that Dunamu and Bithumb would face annual education tax obligations of roughly 10.2 billion won and 3.2 billion won, respectively.
These figures are still provisional, predicated on the assumption that exchanges become liable for the fee and that their trading fees maintain a value-added tax exemption. Alternative definitions of revenue or additional exemptions could alter the ultimate assessments. Furthermore, the final treatment of exchange revenue depends on how officials revise current classification and tax policies.
Digital Asset Basic Act Remains Under Discussion
This tax deliberation unfolds as regulators craft the second phase of South Korea’s digital asset legislation. On October 22, Financial Services Commission Chairman Lee Eog-weon informed lawmakers that inter-agency consultations regarding the Digital Asset Basic Act were nearing completion.
Even so, officials have not established an official timeline for introducing the bill. The anticipated regulations would expand upon the Virtual Asset User Protection Act, which introduced investor safeguards and operational mandates for exchanges.
Several critical questions remain unresolved, including licensing parameters for digital asset service providers, the scope of exchange oversight, and which institutions will be permitted to issue won-backed stablecoins. Back in September, the commission had targeted a November review by a National Assembly subcommittee.
Separate Investor Tax Faces Another Possible Delay
Alongside corporate discussions, South Korea is also contemplating another postponement for its planned levy on retail crypto investors. Current schedules mandate a 22% tax starting January 1, 2027, applied to aggregate annual gains exceeding 2.5 million won.
The presidential office favors delaying the policy, while ruling-party legislators have suggested postponing the effective date to 2029, citing inadequate preparation time and the complexities of tracking overseas transactions.
The education tax targets the taxable operating revenue of exchanges rather than the profits of individual investors. Consequently, the two initiatives target different revenue streams and are proceeding through separate policy channels.
Meanwhile, the National Tax Service continues formulating guidelines for the existing investor tax framework. Officials plan to release instructions in November addressing decentralized finance transactions, airdrops, staking rewards, and hard forks—areas that still require greater regulatory clarity.
Conclusion
South Korea is mulling an education tax on crypto platforms as lawmakers formulate the Digital Asset Basic Act, potentially leaving Dunamu and Bithumb with yearly liabilities of 10.2 billion won and 3.2 billion won, respectively. While deliberations continue, officials are also reviewing a potential delay to the separate capital gains tax impacting retail investors.
