South Korea likely to tax crypto staking, lending rewards at 22%

With South Korea's virtual asset taxation set to begin next January, the government is reportedly reviewing specific tax standards for different transaction types. The Maeil Business Newspaper has obtained a final research report from Changwon National University's Industry-Academic Cooperation Foundation that, for the first time, specifies tax standards for various crypto profit models previously considered a gray area. The research, commissioned by the National Tax Service, was conducted over five months from November of last year to March of this year. The report classifies crypto profit models into four types: staking, lending, airdrops, and hard forks. It defines staking and lending as "lending" transactions under the Income Tax Act. Consequently, interest-like profits from coin deposits are now likely to face a 22% separate tax annually, including local income tax.