South Korea Moves to Delay Crypto Tax Again as 2027 Deadline Nears

Highlights:

• South Korea may delay its planned crypto tax until 2029, though lawmakers have not approved changes.
• Under current rules, crypto gains above 2.5 million won annually would face a combined 22% tax.
• Officials cite difficulties tracking overseas crypto trades, while lawmakers plan to review tax changes in November.

South Korea is moving toward another delay in its planned cryptocurrency tax, which is currently set to begin on January 1, 2027. The presidential office reportedly favors postponement amid concerns over tax collection, investor opposition and difficulties tracking overseas crypto transactions. Lawmakers are now considering pushing the start date to 2029.

According to an October 25 Seoul Economic Daily report, discussions inside the presidential office have shifted toward delaying the tax. However, officials have also said no final decision has been made. Any change to the current timetable will require an amendment to the law.

JUST IN: 🇰🇷 South Korea set to delay its 22% crypto gains tax to 2029, the fourth delay since 2020. pic.twitter.com/JoyjEbvZHw

— Whale Insider (@WhaleInsider) October 25, 2026

South Korea’s Crypto Tax Would Charge 22% on Gains

South Korea introduced the crypto tax through a 2020 amendment to its Income Tax Act. The measure has already been postponed three times, leaving investors uncertain about when it will take effect. Under the current rules, annual income from selling or lending digital assets would face a combined 22% tax, including local income tax. Investors would receive a basic annual deduction of 2.5 million won, meaning the tax would apply to eligible income above that amount.

The government had planned to begin collecting the tax next January. However, officials and lawmakers have raised concerns that reporting systems are not ready, particularly for transactions on foreign exchanges. The issue also affects younger investors, whose views have become part of the government’s discussions as the deadline approaches.

Delayed US Crypto Reporting Adds to Concerns

Another reason behind the proposed delay is the United States’ timetable for joining the Crypto-Asset Reporting Framework (CARF). According to the report, US participation is expected to begin in 2029. CARF allows tax authorities in participating countries to exchange information about crypto users and their transactions. The system helps governments identify income earned through overseas trading platforms.

South Korean officials are concerned about starting the tax before the US begins sharing crypto transaction data. They can track trades on local exchanges, but checking transactions on foreign platforms is more difficult. The government is also preparing new crypto rules, while tax authorities still face challenges in collecting trading records from overseas exchanges and decentralized platforms.

Lawmakers Consider Moving the Crypto Tax to 2029

Members of the ruling Democratic Party of Korea have introduced legislation to delay crypto taxation until 2029. The opposition People Power Party also supports the postponement, citing concerns about burdens on investors and preparation time.

The National Assembly’s tax subcommittee is expected to begin reviewing tax legislation on November 2. Lawmakers could consider the proposed crypto tax amendment during the November review.

Earlier this month, finance officials acknowledged that the cryptocurrency market had changed substantially since the tax was designed in 2020. Some lawmakers, however, have criticized repeated delays and questioned why the government has not completed its preparations.

Until lawmakers amend the law, January 1, 2027 remains the scheduled start date. A move to 2029 still depends on government consultations and National Assembly approval.