South Korea weighs delaying crypto tax until 2029

• South Korea is considering postponing cryptocurrency taxation for a fourth time, potentially shifting implementation from January 2027 to January 2029.
• The proposed tax applies a 22% rate to qualifying annual crypto gains exceeding 2.5 million won after deductible costs.
• The proposed delay reflects concerns about overseas tax reporting, as the United States plans to begin information exchanges in 2029.

South Korea is considering delaying cryptocurrency taxation until January 2029, postponing the planned January 2027 start, according to Newsis.

The proposed delay would mark the fourth postponement of South Korea’s crypto tax framework, which has faced repeated implementation delays.

South Korea’s proposed system would impose a 22% tax, including local income tax, on qualifying annual crypto gains exceeding 2.5 million won after deductible costs.

The timing debate centres on international tax information-sharing, with officials concerned that domestic exchange users could face uneven enforcement before overseas data becomes available.

The OECD’s Crypto-Asset Reporting Framework is scheduled to begin information exchanges among 46 countries in 2027, with additional jurisdictions joining in 2028.

The United States is expected to begin exchanging relevant crypto tax information in 2029, creating a key consideration for South Korea’s implementation timetable.

Democratic Party lawmaker Park Min-gyu has introduced a bill proposing that the tax take effect on 1 January 2029, with lawmakers expected to discuss tax revisions from late November to early December.

The final decision will determine whether South Korea delays crypto taxation while international reporting arrangements develop.