South Korean authorities are considering a fourth postponement of the 22% tax on cryptocurrency gains. The government is currently reviewing a proposal to shift the implementation date from January 1, 2027, to 2029. This tax, originally introduced in a 2020 amendment to the Income Tax Act, includes a 20% national rate and a 2% local surcharge on annual income exceeding ₩2.5 million.
The delay is largely driven by the need to align with the OECD Crypto-Asset Reporting Framework. Since the United States is not expected to join the international data exchange until 2029, officials argue that taxing domestic traders before receiving U.S. data would create an unfair burden. Without this information, the National Tax Service would struggle to monitor overseas transactions effectively.
Legislative efforts to address the tax are underway. On October 16, lawmaker Park Min-gyu and 13 colleagues introduced a bill to link the tax start date to the international data exchange, effectively pushing it to 2029. Meanwhile, lawmaker Song Eon-seok has proposed a bill to remove the crypto tax provisions entirely. Public pressure is also mounting, with two recent petitions each securing over 50,000 signatures.
Industry groups, including the Korea Digital Asset Business Association, are advocating for the 2029 timeline. They argue that comprehensive digital asset legislation, which would provide investor protections comparable to the stock market, must be enacted before any taxation begins. While the Virtual Asset User Protection Act was implemented in July 2024, the broader Digital Asset Basic Act remains pending.
The government plans to finalize its position following inter-agency consultations and the conclusion of parliamentary audits. The National Tax Service intends to release a draft notice regarding taxable crypto income by the end of October. A definitive decision on the tax revisions is expected to be reached through the National Assembly between late November and early December.
