TLDR
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South Korea lawmaker seeks a three-year delay for the planned 22% crypto tax
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New bill would shift South Korea’s planned crypto tax start from 2027 until 2030
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Crypto gains above 2.5 million won annually would face a combined 22% tax rate
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People Power Party also supports a separate push to abolish the crypto tax law
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South Korea advances wider digital asset rules while crypto tax debate grows
South Korea could push its planned cryptocurrency income tax back three years under a new opposition proposal. People Power Party lawmaker Jeong Seong-guk wants the tax start moved from January 1, 2027, to January 1, 2030. The proposal keeps the tax provisions intact but gives lawmakers more time to revise the framework.
South Korea Crypto Tax Delay Proposal Takes Shape
Jeong plans to amend the Income Tax Act and change the scheduled implementation date. He argues that South Korea needs more time to review tax rules and protection measures for market participants. The delay would also give authorities additional time to prepare administrative procedures before enforcement starts.
Under the current framework, South Korea will classify profits from crypto transfers and lending as other income. Annual gains above 2.5 million won will face a combined tax rate of 22%. The rate includes a 20% national income tax and a 2% local income tax.
The planned tax covers virtual assets such as Bitcoin and Ethereum under existing legislation. However, Jeong wants lawmakers to postpone enforcement while broader regulatory discussions continue. His proposal offers another option beside an opposition bill seeking to remove the tax completely.
South Korea Faces Debate Over 2027 Tax Start
The government recently kept the 2027 implementation date in its latest tax reform proposal. South Korea’s Ministry of Economy and Finance did not include another postponement in that package. The National Assembly can still change the timetable before the current start date arrives.
Finance Minister Koo Yun-cheol has supported introducing the levy under the existing schedule. He has also indicated that authorities could improve the framework after gaining experience from its operation. That position conflicts with opposition lawmakers seeking either another delay or a complete repeal.
South Korea has already postponed cryptocurrency taxation several times since lawmakers approved the framework in 2020. Lawmakers originally scheduled implementation for January 2022 before moving the deadline to 2023 and then 2025. They later pushed the effective date again to January 2027.
People Power Party Pushes Broader Tax Changes
People Power Party lawmakers also argue that the existing framework treats different asset classes unevenly. South Korea removed its planned financial investment income tax for most ordinary stock market gains. The opposition argues that taxing crypto gains while many stock gains remain untaxed creates an uneven structure.
Lawmaker Song Eon-seok has separately proposed removing the cryptocurrency income tax provision from the Income Tax Act. The National Assembly’s Finance and Economic Planning Committee is reviewing that proposal. Government and ruling-party support for taxation could make a complete repeal difficult.
South Korea is developing broader digital asset rules alongside the tax debate. Regulators are preparing legislation covering stablecoins, exchanges, disclosures, internal controls, and trading infrastructure. Jeong has also supported legislation allowing institutional cryptocurrency exposure through spot exchange-traded funds.
