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South Korea is considering an education tax on cryptocurrency exchanges that could cost major operators billions of won each year. The proposal would depend on whether authorities classify exchanges as financial businesses under the planned Digital Asset Basic Act.
Upbit operator Dunamu could face an annual bill of about 10.2 billion won, while Bithumb could owe roughly 3.2 billion won. Seoul Economic Daily reported the discussions on October 26, citing government talks with exchange executives. Officials have not announced a final tax decision.
South Korean authorities raised the tax issue during recent discussions with the chief executives of domestic cryptocurrency exchanges. A senior official said the government must review education tax obligations if the new law places exchanges within the financial industry.
The question marks a change from the approach authorities adopted in 2018. At that time, they kept cryptocurrency exchanges outside the financial sector. Trading and brokerage services still fall under information and communications businesses, which do not face the education tax. That status leaves exchanges outside the education tax today.
Financial institutions currently pay 0.5% on taxable operating revenue up to 1 trillion won and 1% on amounts above that threshold. Unlike corporate income tax, this levy applies to revenue rather than profit. As a result, a company may owe education tax even when its operating costs leave it with a loss.
What would that rule mean for South Korea's largest crypto exchanges? According to financial statements reviewed by Seoul Economic Daily, Dunamu recorded 1.5212 trillion won in operating revenue during 2025. Bithumb reported about 651.3 billion won, far below Dunamu's figure.
Coinone recorded 45.4 billion won, while DigitalX reported 9.7 billion won and Gopax 4.3 billion won. The newspaper estimated annual education tax bills of roughly 10.2 billion won for Dunamu and 3.2 billion won for Bithumb.
Those figures remain conditional. The calculations assume exchanges become subject to the levy and that their trading fees qualify for a value-added tax exemption. Different revenue definitions or exemptions could change the final bills. The final treatment of exchange revenue would also depend on how the government updates existing classification and tax rules.
The tax proposal comes as regulators prepare South Korea's second stage of cryptocurrency legislation. Financial Services Commission Chairman Lee Eog-weon told lawmakers on October 22 that government consultations on the Digital Asset Basic Act were nearing completion.
Still, authorities have not set a formal date for submitting the bill. The proposed rules would build on the Virtual Asset User Protection Act, which established investor safeguards and requirements for exchange operations.
Several issues remain unresolved. Officials continue discussing licensing for digital asset service providers, oversight of cryptocurrency exchanges and the institutions eligible to issue won-denominated stablecoins. In September, the commission had aimed for a November review by a National Assembly subcommittee.
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Alongside the business tax debate, South Korea is weighing another delay to its planned tax on individual cryptocurrency gains. Current rules schedule a combined 22% tax from January 1, 2027, on qualifying annual gains exceeding 2.5 million won.
The presidential office supports postponement, while ruling-party lawmakers have proposed moving the start date to 2029. They have cited gaps in preparation and the difficulty of tracking transactions conducted overseas.
The education tax would cover exchanges' taxable operating revenue, not individual investors' gains. The two proposals therefore address different sources of tax payments and follow separate policy discussions.
Meanwhile, the National Tax Service continues preparing guidance for the existing investor tax framework. Authorities expect to publish guidelines in November covering staking rewards, airdrops, hard forks and decentralized finance transactions. Those activities remain among the areas needing clearer tax treatment.
South Korea is considering an education tax on cryptocurrency exchanges as authorities develop the Digital Asset Basic Act. Dunamu and Bithumb could face annual liabilities of 10.2 billion won and 3.2 billion won, respectively. The proposal remains under discussion, alongside a possible delay to the separate cryptocurrency tax on individual investors.
