South Korea considers delaying its crypto gains tax for a fourth time, to 2029

South Korea is considering postponing its tax on cryptocurrency gains for a fourth time, moving its start from January 2027 to 2029, the news agency Newsis reported on Monday 26 October, as cited by CoinDesk and other outlets.

According to the report, which cited unnamed officials, the presidential office is leaning towards a delay because of concerns that the tax burden would fall mainly on users of South Korean exchanges, as authorities would have difficulty tracking trading on US platforms. “Almost half of the crypto market is the U.S.,” one official was quoted as saying.

Under the OECD’s Crypto-Asset Reporting Framework, South Korea, Japan and the UK are due to begin exchanging crypto trading data in 2027, while the United States is not due to start until 2029, CoinDesk reported.

Under current law, annual net crypto income above 2.5 million won (about $1,887) would be taxed at 20%, or 22% including local income tax. The National Tax Service still lists 1 January 2027 as the start date. The tax was first scheduled for 2022.

In July, then Deputy Prime Minister Koo Yun-cheol told lawmakers the tax would take effect in January 2027. His successor, Lee Hyung-il, said at a 6 October parliamentary audit that he would gather views from parliament, experts and industry, CoinDesk reported. Ruling Democratic Party lawmaker Park Min-kyu has proposed a 2029 start. A delay requires parliament to amend the law, with a decision expected by early December.