South Korea Ruling Party Lawmaker Calls to Delay 2027 Crypto Tax

Highlights:

• A ruling party lawmaker wants South Korea to delay its crypto tax beyond the planned January 2027 start.
• The government still backs the current schedule and says the tax impact on most investors should stay limited.
• Major crypto exchanges and many investors are also pushing for a delay because tax rules remain unresolved.

A senior lawmaker from South Korea’s ruling Democratic Party of Korea (DPK) has called for another delay to the country’s planned cryptocurrency tax. The tax is currently scheduled to take effect on January 1, 2027. According to a September 29 report from The Korea Times, Rep. Min Byung-duk said the government should wait until the Digital Asset Basic Act is passed before introducing the tax.

Min, a senior member of the DPK’s policy committee, made the comments on September 28 at EastPoint: Seoul 2026, a virtual asset conference in Seoul. He said the issue is not whether crypto gains should be taxed, but whether South Korea has the legal and technical systems needed to collect the tax properly.

The ruling Democratic Party of Korea (DPK) joined opposition lawmakers and industry groups Monday in calling for a delay on cryptocurrency taxation, adding momentum to growing demand to postpone the planned January rollout.https://t.co/VLCzMd5jDG

— The Korea Times (@koreatimescokr) September 29, 2026

South Korea Faces Questions Over Crypto Tax Readiness

Min pointed to several unresolved areas. These include tracking income earned through overseas crypto exchanges and the lack of a system that allows investors to carry losses forward into future tax years. He argued that taxation should follow a stronger legal framework for digital assets. “It’s not right to start taxation when the basic law has yet to be established,” Min said.

The Digital Asset Basic Act would provide a broader legal framework for South Korea’s digital asset market. Min said establishing that foundation should come before the planned crypto tax begins. However, the government is still supporting the January 2027 launch.

Finance Minister Supports Current Tax Schedule

Finance Minister Lee Hyoung-il told lawmakers on September 28 that existing law already requires virtual asset income to be taxed from next year. He also said the expected burden on many retail investors would be limited. According to Lee, 85% of investors hold less than 5 million won, or about $3,670, in virtual assets. South Korea’s planned tax also provides a basic annual deduction of 2.5 million won.

Under the current framework, profits from transferring or lending digital assets would be treated as miscellaneous income and taxed at 20%. The tax applies to net annual gains above the basic deduction. Losses cannot currently be carried forward to reduce taxes in later years. Transactions made from 2027 would fall under the regime, while investors would make their first related filings and payments in May 2028.

Crypto Industry Also Seeks Tax Delay

The crypto industry is also calling for a postponement. The Digital Asset eXchange Alliance (DAXA), which represents major South Korean exchanges, has raised concerns over acquisition-cost calculations, overseas exchange data and tax treatment across different types of transactions. The policy has already been delayed three times. It was originally due to begin four years ago, but implementation was pushed back over tax infrastructure, market conditions and investor protection concerns.

Public opposition is also growing. A Tiger Research survey conducted with Chainalysis found that 73.7% of 2,423 South Korean crypto investors opposed the taxation plan. The crypto tax is still scheduled to take effect on January 1, 2027, although calls for another delay are increasing.