South Korea weighs fourth crypto tax delay to 2029

South Korea’s presidential office is weighing another delay to the country’s crypto income tax, which is scheduled to start in January 2027, with 2029 under discussion. The office has said no decision has been made, according to The Block’s report on the proposed postponement. If approved, it would be the fourth time the start date has moved since the tax was introduced in a 2020 amendment to the Income Tax Act.

The current law sets a 22% combined rate, including local income tax, on annual income from transferring or lending virtual assets above a 2.5 million won basic deduction. South Korea’s National Tax Service says the tax is scheduled to apply to transfers and lending from Jan. 1, 2027. A delay would therefore change the timetable, not the rate or threshold currently written into law.

Why is the United States central to the proposed delay?

The issue is when tax authorities can exchange crypto transaction information across borders. South Korea is due to begin exchanging data under the OECD’s Crypto-Asset Reporting Framework (CARF) in 2027; the United States is scheduled to join in 2029. Presidential office officials cited by local media say the gap could make it harder to trace activity on U.S. platforms, leaving authorities to seek records individually.

The concern is that a 2027 start could be easier to enforce for transactions on domestic exchanges than for those on overseas platforms. That could produce different practical reporting burdens for investors depending on where they trade. A ruling Democratic Party lawmaker, Park Min-gyu, has proposed setting the start date at Jan. 1, 2029, aligning it with the U.S. CARF timetable. The proposal remains a bill, not enacted policy.

What would another postponement change for investors?

For investors, a delay would give more time before taxable income from crypto transfers or lending enters the current regime. Under the existing rules, the taxable amount is income after the basic deduction and allowable costs, rather than the value of an investor’s holdings. The National Tax Service’s overview of virtual asset income tax rules also says acquisition costs are used in calculating income from transfers.

More time could also help tax authorities and platforms prepare reporting systems for transactions across domestic and overseas accounts. The trade-off is that another shift would extend uncertainty over when the law will take effect. The measure has already moved from its original 2022 start to 2023, 2025 and then 2027. Each delay has postponed collection while the government works through implementation questions.

When will South Korea decide whether to delay the tax?

The presidential office and government have yet to announce a final position. Reports point to consultations with the ruling party and relevant agencies, followed by National Assembly tax-law discussions expected in November and early December. Since the current start date is set in law, a move to 2029 would require lawmakers to approve a change.

The next signals are whether the government formally backs a delay, whether Park’s proposed 2029 date survives legislative review, and whether lawmakers specify how overseas transaction data and tax reporting will be handled. Until those steps produce a final amendment, Jan. 1, 2027 remains the scheduled start date.

Source material

• The Block’s report on the proposed postponement — theblock.co
• overview of virtual asset income tax rules — nts.go.kr