South Korea considers fourth crypto tax delay to 2029

South Korea’s presidential office is discussing a fourth postponement of the country’s crypto gains tax, which is scheduled to begin on Jan. 1, 2027, with a 2029 start under consideration. The change would give tax authorities more time to access overseas trading data, but it would extend uncertainty over when investors will face the levy. The Block’s report, citing local outlet Newsis, said the office was consulting relevant agencies; no final decision has been announced.

What would the tax cover, and what is proposed?

Under the current law, income from transferring or lending virtual assets would be taxed at an effective 22% rate, including local income tax, on annual gains above a 2.5 million won deduction. The measure was enacted through a 2020 amendment to the Income Tax Act, initially scheduled for 2022 and postponed three times, most recently to January 2027.

The proposal gaining attention would replace that fixed start date with one linked to international data exchange. The Herald Business reports that Democratic Party lawmaker Park Min-gyu and 13 colleagues introduced a bill on Oct. 16 to start taxation on Jan. 1 of the second year after the first year of cross-border virtual-asset data exchange. If exchange begins as scheduled in 2027, that formula points to Jan. 1, 2029. The proposal would delay the existing tax; it would not abolish it.

Why does the US data timeline matter?

South Korea and dozens of other jurisdictions are due to begin exchanging crypto transaction information under the OECD’s Crypto-Asset Reporting Framework (CARF) in 2027. The United States is scheduled to join in 2029. The concern reported by The Block is that, before US data becomes available through the framework, Korean authorities may have to track overseas transactions individually. That could make it harder to assess gains consistently and, officials fear, put users of domestic exchanges at a relative disadvantage.

Waiting until 2029 could give authorities and exchanges more time to build systems for collecting transaction histories across platforms. The cost is another two years without the planned tax taking effect, and another change to a schedule already revised three times. That uncertainty cuts both ways: investors would gain time before a tax bill, while taxpayers and platforms would still lack a settled start date.

What still has to happen before a delay is settled?

The reported discussions are not a decision. The ruling camp remains divided over proceeding on schedule or revising the system, while the opposition People Power Party has backed delay proposals that include 2029 or 2030. The choice is therefore between retaining the 2027 date, adopting a data-linked date that points to 2029, or considering a later alternative.

A further postponement would require changes through the National Assembly’s tax-law process. The Block reported that inter-agency consultations would inform the government’s position, with legislative discussions expected in late November or early December. The signals to watch are whether the government formally backs a delay, what date lawmakers put into any amendment, and whether the final text uses a fixed date or keeps the bill’s link to the CARF exchange schedule.

Sources and documents

• The Block’s report — theblock.co
• The Herald Business reports — mbiz.heraldcorp.com