- South Korea’s government backed a fourth delay for its crypto gains tax, targeting a 2029 start.
- The proposed levy remains 22% on annual crypto gains above 2.5 million won.
- Officials also plan a three-year loss carryforward provision for investors.
Korea crypto tax plans are shifting again after the government backed another delay to its long-postponed levy on digital asset gains. Finance Minister Lee Hyoung-il said the government would consult lawmakers on moving the start date from January 2027 to 2029. If approved, that would mark the fourth delay for the measure, which was originally due to begin in January 2022. The Korea crypto tax would apply a 22% charge on annual gains above 2.5 million won, made up of a 20% income tax and a 2% local tax. The latest proposal comes only months after officials had reaffirmed that the tax would begin in 2027.
Korea crypto tax delay heads toward 2029
The government said it supports postponing the tax on cryptocurrency gains by another two years, setting 2029 as the new target. Lee Hyoung-il announced the proposal and said consultations with lawmakers would follow on delaying the January 2027 implementation date.
If lawmakers approve the Korea crypto tax would be delayed for a fourth time. The measure was first scheduled to start in January 2022, then postponed to 2023, 2025 and 2027 before the latest proposed shift to 2029.
Why officials want a Korea crypto tax delay
Officials pointed to 2029 as the year information exchange with the United States is expected to begin under the Crypto-Asset Reporting Framework. The government said applying the tax before those exchanges begin could leave the domestic market at a disadvantage compared with overseas markets.
The government also said it wants to reflect changes tied to planned digital asset legislation. In that sense, the Korea crypto tax is being reviewed alongside broader legal and reporting changes rather than as a separate policy decision.
Korea crypto tax rules and planned amendments
Under the current proposal, the tax would impose a 22% levy on annual crypto gains above 2.5 million won, or about $1,860. That total consists of a 20% income tax and a 2% local tax.
Officials also said they plan to add a three-year loss carryforward provision. That would let investors offset crypto losses against profits earned over the following three years. The government plans to submit amendments during parliament’s regular session in 2027, with detailed tax guidelines planned for the first half of 2028.
Industry concerns and the policy reversal
The proposal marks a reversal from the government’s earlier position. In May, a Finance Ministry official had said implementation would proceed in 2027, but the latest announcement now points to a possible two-year delay beyond that date.
South Korean finance officials recently met with major crypto exchanges as calls to postpone the tax increased. Industry representatives said tax rules for different types of transactions were still unresolved and argued there was not enough time to build the necessary infrastructure before the Korea crypto tax takes effect.
Conclusion
The latest Korea crypto tax proposal would move the start date to 2029 and extend a long series of delays that began after the original January 2022 plan. Officials say the change is linked to future information exchange with the United States under the Crypto-Asset Reporting Framework and to planned digital asset legislation. The tax itself would still be a 22% levy on annual gains above 2.5 million won. The government has also outlined a three-year loss carryforward provision, amendments in 2027 and detailed guidance in the first half of 2028. The next step is consultation with lawmakers on whether the latest delay will be approved.
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