South Korea Weighs Fourth Delay of 22% Crypto Tax to 2029

South Korea’s presidential office is discussing a fourth postponement of the country’s 22% crypto gains tax, potentially moving the start of the South Korea crypto tax from January 1, 2027 to 2029. The review centers on officials’ concern that missing US trading records would leave users of domestic exchanges bearing an uneven burden.

The discussions were described in October 26, 2026 coverage citing South Korean outlet Newsis. The National Tax Service still lists January 1, 2027 as the effective date; changing it requires parliament to amend the law.

South Korea Crypto Tax Review Puts 2029 on the Table

What Is the Presidential Office Considering?

The presidential office is discussing postponement with government agencies. An official from the Blue House presidential residence said, “We are discussing postponing the implementation of virtual asset taxation,” according to Cointelegraph’s account of the Newsis coverage, putting the executive branch directly into a debate already involving lawmakers and the crypto industry.

The proposed alternative is tied to US participation in the OECD’s Crypto-Asset Reporting Framework, or CARF. South Korea is scheduled to begin international exchanges of crypto transaction information in 2027, while US participation is scheduled for 2029.

How Has the Government’s Position Shifted?

In July, then-Deputy Prime Minister Koo Yun-cheol told lawmakers that taxation would begin in January 2027. The presidential office’s consideration of another delay marks a shift from that position.

His successor, Lee Hyung-il, said at an October 6 parliamentary audit that he would gather views from parliament, experts and industry.

The reconsideration also extends to the governing party. Kim Min-seok’s call for a final review followed a period in which the Democratic Party had held to the 2027 start. Support for reopening the timetable now reaches both the presidential office and the party that had defended the existing deadline.

Why US Trading Records Matter to Korean Exchange Users

Why Are Domestic Exchange Customers Central to the Debate?

The presidential office fears that authorities would have better access to records from Korean platforms than from US exchanges. That could leave domestic exchange customers carrying a disproportionate share of the enforcement burden, according to CoinDesk’s account of the discussions.

A South Korean official described the US as accounting for nearly half of the virtual asset market. That assessment explains why officials consider access to American trading records a major obstacle rather than a peripheral reporting issue.

What Would the Overseas Enforcement Problem Involve?

Without the US information connection, officials fear the National Tax Service would have to pursue overseas transactions individually, a far cry from pulling domestic exchange records.

The presidential office’s concern also encompasses traders holding assets in self-custody. An official identified a possible imbalance between those users, customers of foreign platforms and customers of Korean exchanges, extending the enforcement question beyond the location of an exchange.

The government previously argued that foreign financial account reporting could help it track offshore holdings. The latest review therefore turns on whether those existing tools are sufficient for the planned launch, rather than whether overseas activity falls outside the policy.

Lawmakers Have Proposed Both Delay and Repeal

How Would the Proposed 2029 Start Be Set?

Democratic Party lawmaker Park Min-gyu and 13 colleagues filed a bill on October 16 linking commencement to the international reporting timetable. The proposal would start taxation on January 1 of the second year after the first international data exchange.

With South Korea’s exchanges scheduled to begin in 2027, that legislation would place the tax’s start in 2029.

How Does the Repeal Proposal Differ?

People Power Party lawmaker Song Eon-seok separately proposed removing the crypto tax provisions from the law — a different outcome from moving the start date: one would eliminate the provisions, the other would preserve them for later implementation.

The competing bills put both the timing and the continued existence of the levy before lawmakers. Democratic Party leader Kim Min-seok has called for a “thorough final review,” adding pressure for reconsideration without selecting either legislative route.

How the Crypto Tax Deadline Reached 2027

What Happened After the 2020 Tax Amendment?

The levy originated in a 2020 amendment to the Income Tax Act and was first scheduled to begin in 2022. Its implementation then moved to 2023, 2025 and 2027, as detailed in Bitcoin Magazine’s chronology of the tax legislation.

Officials had cited tax-system readiness and investor protections during the earlier postponements; the US reporting issue adds a cross-border enforcement problem to that record.

An earlier round of negotiations considered a different deadline. In July 2024, the People Power Party was weighing a move from January 2025 to January 2028, DailyCoin reported at the time. That was a proposal under discussion, rather than the date ultimately adopted. Former Democratic Party leader Lee Jae-myung had added to the debate on July 10 by saying the country needed to “think more about the timing of the implementation.”

The administrative objections then went beyond exchange reporting software. A government agency official said, “Secondary legislation is needed to classify cryptocurrencies and specify the types of business within the industry in detail so that taxes can be levied without difficulty.” The official described institutional arrangements as insufficient. Those concerns preceded the July 2024 investor protection law and show how the tax debate has repeatedly intersected with unfinished industry legislation.

What Public Pressure Preceded This Review?

Two public petitions recently cleared the 50,000-signature threshold that triggers legislative review. One sought repeal of the crypto tax, while the other sought a two-year postponement.

What the Planned 22% Crypto Tax Would Cover

Which Income Would Be Taxable?

The planned levy covers annual net income from transferring or lending crypto assets after a 2.5 million won deduction. Its scope is income from those activities, rather than the total value of an investor’s holdings or gross trading volume.

The net-income basis makes transaction records and cost calculations important to implementation, which is why reporting access and exchange preparation have become central to the launch debate.

How Do the National and Local Rates Fit Together?

The headline 22% combines a 20% national income tax rate with a 2% local income tax rate. The 2.5 million won annual deduction applies before the planned levy on taxable net income.

The International Reporting Calendar Behind the Dispute

Which Jurisdictions Begin Before the United States?

South Korea, Japan and the UK are scheduled to begin exchanging crypto-asset information in 2027. Singapore, Switzerland and Hong Kong are set to follow in 2028 under the OECD timetable cited in the coverage.

Those staggered dates mean Korea’s initial reporting network would expand in stages. The proposed postponement would align the tax’s commencement with the later US participation date, rather than the first group’s start.

How Have Other Countries Handled Taxation Before Data Exchanges?

The US, UK and Japan already tax crypto without waiting for the international exchange system to begin. Their approach provides a counterpoint to the argument that South Korea should wait for the American data connection.

Exchange Readiness and Investor Protections Shape the Debate

What Implementation Problems Have Exchanges Raised?

Industry concerns include incomplete systems for handling different transaction types and calculating cost bases. Exchanges have warned that a rushed launch could produce inconsistent treatment or encourage activity to move offshore.

Finance officials had been expected to meet representatives of major domestic exchanges on October 20 to discuss readiness, in advance coverage carried by TradingView. That report described a planned consultation; it did not establish an outcome or an agreed change to the implementation date.

More time could allow platforms to develop their systems, while another postponement would extend uncertainty over when investors and exchanges must operate under the new rules.

What Protections Does the Industry Want First?

The Korea Digital Asset Business Association supports a 2029 start and wants a digital asset law providing stock-market-grade investor protections before taxation begins.

The Virtual Asset User Protection Act took effect in July 2024. The Digital Asset Basic Act, which would provide a licensing framework, remained pending at the time of the October 26 coverage, and lawmakers have questioned beginning taxation before that framework is enacted.

What Comes Next in South Korea’s Crypto Tax Process

How Is the Government Preparing Its Decision?

The National Tax Service plans to publish a draft notice on taxable crypto income by the end of October 2026. Administrative preparations are therefore continuing while the presidential office considers postponement.

The government is expected to settle its position through inter-agency discussions after parliamentary audits conclude. Financial Services Commission chairman Lee Eog-weon has also said the tax should “take various circumstances into full consideration,” placing the financial regulator among the institutions weighing implementation.

When Could Parliament Change the Start Date?

National Assembly tax revisions are expected between late November and early December 2026. That legislative window is the next major point to watch for investors and exchanges preparing for the scheduled launch.

A postponement would give the industry more preparation time and defer the planned tax burden on covered income. If lawmakers leave the commencement provision unchanged, the January 2027 schedule remains the basis for implementation; the decisive development is the tax amendment, rather than another expression of support for delay.

?FAQ

01When Is South Korea’s Crypto Tax Currently Scheduled to Start?

The National Tax Service’s listed commencement date is January 1, 2027. It is also continuing preparations, including a planned draft notice on taxable crypto income by the end of October 2026.

02Why Are Officials Considering Delaying the Tax Until 2029?

Officials want access to US crypto trading information when American participation in CARF begins in 2029. They fear that launching earlier would make domestic exchange activity easier to tax consistently than transactions conducted through US platforms.

03How Much Crypto Income Would Be Subject to the Planned Levy?

The policy provides an annual deduction of 2.5 million won from net income earned through crypto transfers or lending. The planned combined rate on taxable income is 22%, including national and local income taxes.

04Which Countries Are Scheduled to Share Crypto-Asset Data With South Korea Before the US?

Japan and the UK are in the 2027 group alongside South Korea. Singapore, Switzerland and Hong Kong are scheduled for 2028, ahead of the US start in 2029.

05What Must Happen for a Fourth Delay to Become Law?

Parliament must amend the legislation governing commencement. Lawmakers have put forward both a reporting-linked postponement bill and a separate proposal to remove the crypto tax provisions.

06How Many Times Has South Korea Already Postponed the Crypto Tax?

There have been three previous postponements, moving the initial 2022 launch to 2023, then 2025 and then 2027. The current debate would add a fourth delay, with earlier deferrals also involving concerns about administrative readiness and investor protections.

07Who Wants the Delay, and Who Wants the Tax Scrapped?

The Korea Digital Asset Business Association backs a 2029 start, while People Power Party lawmaker Song Eon-seok has proposed removing the crypto tax provisions entirely. Two public petitions that cleared the 50,000-signature threshold split the same way — one for repeal, one for a two-year postponement.

This article is for information only and is not financial advice.