South Korea Weighs Fourth Delay of Crypto Tax to 2029

South Korea is considering delaying its cryptocurrency gains tax until 2029, marking a potential fourth postponement since the policy was first proposed in 2020. The presidential office is leaning toward this extension due to significant challenges in tracking activity on U.S.-based exchanges, which account for nearly half of the global virtual asset market Source: CoinDesk.

The Obstacle

The primary driver for the delay is the lack of international data sharing. While South Korea plans to implement the OECD’s Crypto-Asset Reporting Framework starting in 2027, the United States will not begin participating until 2029 Source: Cointelegraph. Officials cite the absence of U.S. tax data as the biggest obstacle to effective enforcement, fearing that the tax burden would unfairly fall on users of domestic platforms while those using U.S. services evade detection Source: CoinDesk.

Policy Details and Shifts

Under the current rules, annual net income from crypto transfers or lending exceeding 2.5 million won ($1,883–$1,887) is taxed at 20%, or 22% when including local income tax Source: Cointelegraph; Source: CoinDesk. Although the National Tax Service still lists January 1, 2027, as the start date, discussions within the Blue House indicate a shift in stance Source: Cointelegraph; Source: CoinDesk. This represents a departure from July statements by former Deputy Prime Minister Koo Yun-cheol, who affirmed the 2027 timeline. His successor, Lee Hyung-il, has indicated he will gather views from parliament and industry experts before finalizing the decision Source: CoinDesk.

Key Points

• The tax imposes a 22% rate on gains above the 2.5 million won threshold.
• The U.S. joins the OECD reporting framework in 2029, limiting data availability until then.
• The presidential office prioritizes fair enforcement over strict adherence to the original 2027 schedule.
• No official announcement has been made; the National Tax Service retains the 2027 date pending government decision.