South Korea Weighs Fourth Crypto Tax Delay, With 2029 Start Possible

South Korea is considering delaying its cryptocurrency gains tax until 2029, potentially marking the fourth postponement of a policy originally scheduled to begin in 2022, according to local reporting. The proposal would move implementation back another two years from the current January 2027 start date.

The presidential office is reviewing a further deferral with relevant government agencies, Newsis reported. Separately, Herald Business reported that the office had acknowledged considering a delay but said no decision had been made, leaving the existing timetable in place while discussions continue.

The tax was introduced through a 2020 amendment to the Income Tax Act. Under the planned system, income from transferring or lending virtual assets would face a combined 22% tax, including local income tax, after allowable costs and an annual basic deduction of 2.5 million won.

Previous postponements reflected concerns about taxation infrastructure and investor protection, according to the local reports. The latest debate again centers on whether authorities can collect sufficiently complete transaction records to administer the levy consistently, particularly when investors use platforms outside South Korea.

A key issue is the timetable for international information sharing under the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework, known as CARF. The framework is designed to enable automatic exchanges of crypto-related tax information between participating jurisdictions, helping authorities identify activity beyond their domestic markets.

According to Newsis reporting cited by The Block, South Korea is expected to begin exchanging information under the framework in 2027, while U.S. participation is scheduled for 2029. A presidential office official reportedly identified the lack of U.S. trading data as a major obstacle, saying authorities would otherwise need to trace overseas transactions individually.

That gap has raised concerns about an uneven burden on investors. Local reporting says officials worry that users of domestic exchanges could be easier to tax than people trading through overseas platforms, making access to cross-border records central to the argument for another postponement.

The debate has also reached the National Assembly. Reports identify a proposal from ruling Democratic Party lawmaker Park Min-gyu that would effectively move implementation to 2029, while opposition lawmakers have also backed postponement proposals. Those initiatives signal legislative support for reconsidering the schedule, but do not themselves change the law.

Critics argue that repeated delays carry their own costs. Herald Business reported that People’s Solidarity for Participatory Democracy urged implementation on schedule, warning that further politically driven postponements would weaken tax-policy consistency and predictability. The disagreement pits concerns about collection readiness against the credibility of a repeatedly deferred levy.

The next step is consultation between the government and lawmakers, followed by consideration of any necessary Income Tax Act amendments. Local reports anticipate a clearer outcome during National Assembly tax deliberations in late November or early December. Until that process produces a change, 2029 remains a proposed start date rather than an approved one.