South Korean Government to Meet Crypto Exchanges Amid Calls to Delay 2027 Tax

Highlights:

• South Korea will meet with major crypto exchanges on October 20 to discuss concerns over its planned tax.
• Crypto exchanges want clearer tax rules for staking, airdrops, and DeFi transactions before the January 2027 launch.
• Lawmakers are pushing to delay South Korea’s crypto tax until 2029, but no postponement has been approved.

South Korea will meet representatives from five major cryptocurrency exchanges on October 20 as pressure grows to delay a new tax on crypto profits. The tax is scheduled to take effect on January 1, 2027, but exchanges say important rules and reporting systems are not ready.

According to an October 18 report by Yonhap News Agency, government officials will hear concerns from Upbit, Bithumb, Coinone, DigitalX, and Gopax, along with the Digital Asset Exchange Alliance (DAXA). The meeting comes as lawmakers and industry officials question whether the tax can be introduced on schedule.

JUST IN: 🇰🇷South Korea's 22% crypto tax has already been delayed 3 times. Now the country's five biggest exchanges are meeting the government on Tuesday to push for a 4th times, with a ruling party bill aiming for 2029 pic.twitter.com/39FOiHQJUw

— CryptoJack (@cryptojack) October 18, 2026

South Korea to Discuss Crypto Tax Rules With Five Exchanges

The talks will include First Vice Minister Kwon Dae-young and Financial Services Commission official Yoo Young-jun. Discussions will focus on how crypto income should be taxed and what exchanges need before the rules take effect.

The meeting follows comments made by Deputy Prime Minister Lee Hyung-il during a parliamentary audit on October 6. He said the government would gather views from different groups before moving ahead. South Korea first introduced its crypto tax framework through a 2020 income tax law amendment. However, implementation has already been delayed three times.

Under the current plan, annual income from selling or lending cryptocurrencies would receive a deduction of 2.5 million won. A combined 22% tax, including local income tax, would then apply to income above that amount. Meanwhile, the government is still preparing for the January launch. During an October 13 parliamentary hearing, tax officials said they were preparing to issue the relevant guidance around November.

Crypto Exchanges Seek Clearer Rules for Staking and DeFi

Crypto businesses argue that several common transactions do not fit neatly into existing tax categories. Staking is one example. Investors may earn tokens by helping validate blockchain transactions, but regulators still need to decide how those rewards should be classified for tax purposes.

Exchanges also want clearer rules for airdrops, hard forks and decentralized finance (DeFi) transactions. An airdrop distributes tokens to wallet holders, while a hard fork can create a separate cryptocurrency from an existing blockchain.

Beyond these questions, industry representatives have raised concerns about tracking individual holdings, preparing tax reports and building payment systems. They have also questioned why crypto investors would face different tax treatment from stock investors and why losses cannot be carried forward to offset future taxable gains.

Lawmakers Push for Crypto Tax Delay as New Regulations Advance

Calls for another postponement have also reached parliament. On October 16, Democratic Party lawmaker Park Min-gyu introduced a bill that would effectively move the start of crypto income taxation to 2029. Fellow party lawmaker Min Byeong-deok has also urged the government to delay the tax and prioritize the proposed Digital Asset Basic Act.

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

That broader legislation is expected to gain momentum in November. Officials are working on proposals covering exchange ownership limits and rules for issuing won-backed stablecoins. The October 20 meeting could influence the debate, although no new postponement has been approved. Unless lawmakers change the law, South Korea’s crypto tax remains scheduled to take effect in January 2027.