South Korea's presidential office is leaning toward postponing its planned 22% tax on crypto gains for a fourth time, according to local media reports. The levy is currently due to take effec
South Korea's presidential office is leaning toward postponing its planned 22% tax on crypto gains for a fourth time, according to local media reports. The levy is currently due to take effect on January 1, 2027, and officials are now discussing a later start.
An official from the presidential office said on October 25 that discussions had shifted toward a delay, according to Seoul Economic Daily, as relayed by KuCoin News. The same report said no final decision has been announced and that parliamentary approval is still required.
Under the current law, income from the transfer or lending of virtual assets above a basic deduction of 2.5 million won (about $1,888) would face a combined 22% rate, according to UPI. The rate combines income tax and local income tax.
The measure was introduced through a 2020 amendment to the Income Tax Act and was first scheduled for January 2022, crypto.news reported. Lawmakers later moved the start date to 2023, then 2025 and finally January 2027. Another postponement would be the fourth.
Reports point to two main concerns. One is the difficulty of obtaining trading data from overseas exchanges. The other is the weight of younger investors in the market. TechFlow, citing the Korea Economic Daily, said the government worries that taxing earlier could hinder efforts to track the income of Korean residents on U.S.-based exchanges if the United States joins the Crypto-Asset Reporting Framework (CARF) in 2029. The same report cited financial regulator data showing that users in their 20s and under, plus those in their 30s, made up 44.1% of crypto users in the first half of the year.
Proposals to push the start date to 2029 have been raised in parliament. Phemex reported that a ruling Democratic Party lawmaker, Park Min-kyu, introduced an amendment for a 2029 start, with support from the opposition People Power Party. A delay to 2029 would roughly line up the Korean start with the expected US participation in CARF.
The timing matters for local investors. The government had been preparing administrative procedures for a January 2027 start, but the need for a delay has been raised mainly by politicians from both the ruling and opposition parties, according to JKN. Lawmakers are expected to take up the issue during the November tax law review.
For now, the January 2027 date remains in law until parliament acts. After three earlier postponements, the pattern of shifting deadlines continues to leave Korean crypto traders without a firm start date.
UPI: South Korea considers fourth delay to cryptocurrency taxcrypto.news: Why does South Korea want to delay its crypto tax until 2029?JKN: Blue House considers delaying virtual asset taxation
