South Korea Considers Education Tax for Crypto Exchanges

Under the current regulatory framework, crypto exchanges are classified as information and communications businesses, exempting them from the education taxes levied on traditional banks, insurers, and securities firms. If reclassified, these exchanges would face a tax on operating revenue rather than net profit—a structure that mandates payment even during periods of financial loss. Financial institutions currently pay 0.5% on revenue up to 1 trillion won, with the rate rising to 1% for revenue exceeding that threshold.

Financial statements from 2025 highlight the potential fiscal impact of this reclassification. Dunamu, the operator of Upbit, reported 1.52 trillion won in operating revenue, potentially triggering an annual tax bill of approximately 10.2 billion won. Bithumb, with 651.3 billion won in revenue, could face a liability of roughly 3.2 billion won. While these figures remain estimates, the government has begun discussing the shift with industry executives as part of broader efforts to finalize the second stage of national digital asset legislation.

This debate coincides with a separate, ongoing struggle over the taxation of individual crypto investment gains. While a 22% tax on gains exceeding 2.5 million won is scheduled for 2027, the presidential office and ruling-party lawmakers are pushing for a delay until 2029. Unlike the investor gains tax, the proposed education tax focuses exclusively on the gross revenue of the exchanges themselves, signaling a tightening of the regulatory environment for domestic crypto operators.