TLDR
- South Korea is considering a fourth delay to its crypto gains tax, moving the start date from January 2027 to 2029.
- Officials worry domestic exchange users would carry most of the tax burden because the U.S. will not share crypto trading data until 2029.
- The tax would be 22% on yearly profits above 2.5 million won, about $1,887.
- Lawmaker Park Min-kyu has proposed moving the start date to Jan. 1, 2029.
- The delay needs parliament to change the law, and Jan. 1, 2027 remains the legal start date for now.
South Korea is considering a fourth delay to its tax on cryptocurrency gains. The new start date would be 2029, according to a report from Newsis.
🇰🇷JUST IN: South Korea could DELAY its 22% crypto tax for the FOURTH time, likely to 2029.
A bill from the ruling Democratic Party would push the start date back from January 2027.
It says Korean exchange users would be hit hardest, since authorities can't see trades on foreign… pic.twitter.com/w2aUL1B7vI
— Coin Bureau (@coinbureau) October 25, 2026
The presidential office is leaning toward the delay, citing unnamed officials. Their main worry is that users of South Korean exchanges would carry most of the tax burden. Authorities would have a hard time tracking activity on U.S. platforms.
“Almost half of the crypto market is the U.S.,” one official told the news outlet. The official called the lack of U.S. tax data the biggest obstacle.
How the Tax Works Today
Under current rules, annual net income from crypto transfers or lending is taxed at 20%. With local income tax, the rate is 22%. A deduction of 2.5 million won applies first.
The law does not let investors carry losses into later years. The National Tax Service still lists Jan. 1, 2027 as the start date.
The tax was first set for 2022. It was later pushed to 2023, then to 2025, and most recently to 2027. In six years, it has not collected a single won.
The Data Sharing Gap
The delay concern comes from the OECD’s Crypto-Asset Reporting Framework, known as CARF. The system lets tax authorities swap crypto transaction data across borders.
South Korea, Japan and the U.K. are due to begin exchanging data in 2027. Singapore, Switzerland and Hong Kong follow in 2028. The U.S. will not start until 2029, based on the OECD timetable.
The U.S., U.K. and Japan already tax crypto without waiting for data exchanges. South Korea’s government had earlier said it could track offshore holdings through foreign financial account reporting.
Domestic exchange customers could face closer scrutiny because their trades are easier to track. Industry groups warn that early taxation could push trading to overseas platforms. They also say local exchanges would face higher compliance costs.
Political Moves
The talks mark a shift from July. Then, Deputy Prime Minister Koo Yun-cheol told lawmakers the tax would start in January 2027. Koo has since been replaced by Lee Hyung-il. At an Oct. 6 audit, Lee said he would gather views from parliament, experts and industry.
On Oct. 16, Democratic Party lawmaker Park Min-kyu introduced a bill linking the start date to the second year after South Korea’s first CARF exchange. That points to 2029. Opposition People Power Party lawmakers have floated delays to 2030 or ending the tax entirely.
A National Assembly petition for a two-year delay gathered more than 50,000 signatures. That qualifies it for formal review. On Oct. 20, finance ministry officials met the five largest exchanges and the Digital Asset Exchange Alliance to discuss readiness.
For now, Jan. 1, 2027 is still the legal start date. A fourth delay would require parliament to change the law.
