Politics · South Korea · 4 hrs ago
South Korea weighs another delay to planned cryptocurrency tax
South Korea is reportedly leaning toward another delay to its cryptocurrency tax, which is due to start on Jan.
1.
Lawmakers approved the tax in 2020, and it has already been postponed three times.
Under the plan, annual income from selling or lending digital assets would have a 2.5 million won deduction, with the rest taxed at 22 percent, including local income tax.
Exchanges lack complete tax-reporting systems, and investors do not all have equal access to their transaction records.
Officials also need clearer rules for activities such as staking and decentralized finance, while information-sharing with some countries will not begin until later years.
The tax could therefore be harder to verify for overseas trading, and some investors say crypto is treated more heavily than domestic stocks.
A further delay would need a firm plan to fix these gaps; a lawmaker has proposed waiting until 2029, and the National Assembly is urged to advance a law setting basic rules for digital assets.
South Korea’s presidential office has reportedly decided to pursue another delay to a cryptocurrency income tax scheduled to take effect on Jan. 1, 2027.
The reported move is being interpreted as a response to public opinion among younger people, who make up more than 40 percent of cryptocurrency investors.
The levy has already been postponed three times since lawmakers approved it in 2020.
A Korea Herald editorial carried by Yonhap says exchanges’ tax-reporting systems and rules for valuing some transactions are not ready.
The editorial says any further delay should come with a firm timetable to address the system’s shortcomings.
- Who
- South Korea’s presidential office is reportedly pursuing a further delay to the cryptocurrency tax.
- What
- The planned tax on cryptocurrency income may be postponed again; the government is weighing whether to proceed.
- When
- The tax is scheduled to begin on Jan. 1, 2027; the reported decision to pursue another delay was reported on Oct. 25, 2026.
- Where
- South Korea.
- Why
- The reported move is interpreted as reflecting concern about younger people’s views. An editorial also cites problems with reporting systems, transaction rules and access to overseas trading data.
This story does not have two clearly opposing sides.
Lawmakers approved the cryptocurrency income tax.
The tax is scheduled to take effect on Jan. 1 after three postponements.
Chosun Ilbo reported that the presidential office had decided to pursue a further delay.
South Korea is set to begin exchanging crypto-asset information under the OECD reporting framework.
- Planned start date
- Jan. 1, 2027
- Prior postponements
- Three since lawmakers approved the tax in 2020
- Basic deduction
- 2.5 million won
- Tax rate
- 22 percent, including local income tax
- Investors aged 20–39
- More than 40 percent of cryptocurrency investors
- OECD information exchange
- South Korea is set to begin in 2027