South Korea moves to delay its crypto tax again, likely to 2029

South Korea's presidential office is now backing a fourth delay of the country's long-planned tax on crypto gains, which is due to start on Jan. 1, 2027, with 2029 the most likely new date, Seoul Economic Daily reported on Sunday. "The discussion has moved toward delaying implementation of the crypto tax," an official told the paper.

Only a week ago the finance ministry was still meeting exchanges about its tax guidelines while calls for a delay grew louder.

What the tax would do

• Income from selling or lending virtual assets would be taxed at a combined 22% (other income tax plus local income tax).
• The first 2.5 million won of annual gains would be tax-free.
• The rule was written into the Income Tax Act in 2020 and has already been postponed three times.

Why Seoul wants more time

The officials quoted by Korean media give three reasons:

• Systems are not ready. Collection preparations are incomplete; an opposition lawmaker said this week that even the five big exchanges have not finished their tax reporting systems, according to The Korea Times.
• Young investors. The office says it weighed sentiment among people in their 20s and 30s, for whom crypto is part of building wealth.
• CARF timing. Under the OECD's Crypto-Asset Reporting Framework, tax authorities swap data on users of crypto platforms. Korea expects to start exchanging data in 2027, but the United States only joins from 2029, so users of Korean exchanges could end up taxed more consistently than people trading on foreign platforms.

What happens next

Fourteen ruling-camp lawmakers, including Democratic Party member Park Min-gyu, have tabled an amendment that would push the start to 2029, and the main opposition People Power Party is also calling for a delay. A government-party meeting is expected once this month's parliamentary audit ends, and the change could pass during the November tax law review. Democratic Party leader Kim Min-seok has said the issue "needs to be settled this year."

Another presidential official told Chosun Biz that a deferral is under review but "nothing has been decided." Until parliament votes, the January 2027 start remains law. Other countries are moving the opposite way: Australia has drafted a bill to adopt CARF reporting.