South Korea Considers Delaying Crypto Tax to 2029
Government Officials Discuss Further Tax Delay
South Korean government officials are reportedly discussing another delay for the country's cryptocurrency tax policy, potentially moving the start date from January 2027 to 2029. The policy would impose a 22% tax on crypto gains — 20% from income tax and 2% from local tax — for investors earning more than 2.5 million Korean won (about $1,883) per year.
US Data Sharing Timeline Cited as Key Factor
The possible delay stems from concerns about receiving tax data from the United States. The US is scheduled to join the OECD's Crypto-Asset Reporting Framework in 2029, while South Korea plans to implement the rules starting in 2027. A South Korean official said the US accounts for nearly half of the virtual asset market, making data exchange important for enforcement.
Key Details About the Tax Policy
- The 22% tax applies to annual crypto gains exceeding 2.5 million Korean won ($1,883)
- The policy was first proposed in 2020 and has faced multiple delays
- South Korea's National Tax Service currently lists January 1, 2027 as the official start date
- A Blue House presidential residence official confirmed discussions about postponement are underway
What Is Confirmed
- Government officials are actively discussing a delay
- The current legal start date remains January 1, 2027
- The US will join the OECD crypto reporting framework in 2029
- South Korea plans to implement OECD rules in 2027
What Remains Unclear
No final decision has been announced. It is unknown whether the delay will be approved, what legislative steps would be required, or how the change would affect investors who have already prepared for the 2027 start date.
Why This Matters for Crypto Investors
The tax policy affects anyone in South Korea earning crypto profits above the threshold. A delay would give investors more time before reporting obligations begin. The issue also highlights how international tax cooperation — specifically data sharing between major markets like the US and South Korea — shapes domestic crypto regulation.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.