South Korea weighs delaying cryptocurrency gains tax to 2029

South Korean officials are reportedly discussing postponing the country’s cryptocurrency gains tax until 2029, potentially delaying the measure for a fourth time. Cointelegraph, citing an Oct. 26 report by South Korean news agency Newsis, said concerns over access to US trading data are central to the discussions.

The tax remains scheduled to take effect on Jan. 1, 2027. According to Cointelegraph, South Korea’s National Tax Service continued to list that date when the report was published, meaning the discussions have not yet translated into a confirmed change in the implementation timetable.

The policy would impose a combined 22% tax on annual cryptocurrency gains above a basic deduction of 2.5 million won. That comprises a 20% income tax and a 2% local levy, with the framework covering gains from transferring or lending digital assets.

First introduced in 2020, the measure was originally scheduled to begin in 2022 before successive postponements moved implementation to 2023, 2025 and then 2027, The Korea Times reported. The latest debate again places the readiness of reporting systems alongside the government’s aim of taxing investment income consistently.

The immediate concern involves different implementation schedules for the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework, known as CARF. South Korea is expected to begin exchanging information in 2027, while the United States is scheduled to participate in 2029, according to the reports. The OECD describes CARF as a system for annual, standardized exchanges of crypto transaction information between tax authorities.

That gap could make it harder for South Korean authorities to obtain records of transactions conducted through US platforms. The Block, also citing Newsis, reported that officials were concerned about having to trace overseas transactions individually. Without comparable access to foreign records, enforcement could fall more heavily on investors using domestic exchanges.

Lawmakers have proposed linking the tax’s introduction to the international reporting timetable. According to The Korea Herald, Democratic Party of Korea lawmaker Park Min-gyu and 13 colleagues introduced a bill that would begin taxation two years after the first year of cross-border crypto data exchanges. With exchanges expected to start in 2027, that formula would point to 2029.

Supporters of postponement say exchanges need additional time to prepare transaction-reporting systems and establish reliable acquisition-cost records, The Korea Herald reported. Critics argue that repeated delays weaken tax fairness and policy predictability. The disagreement therefore extends beyond the start date to whether authorities should proceed while improving the system or wait for broader access to overseas information.

The government’s position is expected to emerge through consultations among ministries and lawmakers. Reports indicate that National Assembly deliberations on income tax amendments could produce a decision in late November or early December. Until a change is enacted, 2029 remains a proposed alternative rather than the confirmed start date.