Politics · South Korea · 59 mins ago
South Korea Delays Decision on Possible Further Crypto Tax Postponement
South Korea’s ruling party and government have not decided whether to delay crypto taxes again.
The tax is due to begin in January, after it was postponed three times since the system was set up in 2020.
Party members raised concerns about gaps in tax systems and worries among young people.
The government is also considering changes in the market and how to treat people using overseas exchanges.
Under the current rules, annual income above 2.5 million won from selling or lending crypto would face a 22% tax, including local income tax.
The ruling party plans to gather more views before deciding whether to postpone the start date.
If there is no further delay, the tax will take effect in January.
South Korea’s ruling Democratic Party and government have not decided whether to delay the planned cryptocurrency tax again.
The tax is scheduled to take effect next January, unless a further postponement is approved.
Party leader Kim Min-seok said officials should consider gaps in tax infrastructure and concerns among young people.
The government said it is considering a reasonable approach that people can accept and that can be implemented reliably.
The tax system has already been postponed three times since it was established in 2020.
- Who
- South Korea’s Democratic Party and government are discussing whether to postpone cryptocurrency taxation again.
- What
- They have not reached a decision on a further delay.
- When
- The discussions took place on October 28, 2026. The tax is scheduled to start next January if it is not postponed.
- Where
- At the National Assembly in South Korea.
- Why
- Officials cited tax infrastructure gaps, concerns among young people, changing market conditions and fairness in taxation compared with users of overseas exchanges.
This story does not have two clearly opposing sides.
South Korea established its cryptocurrency tax system.
The tax’s implementation has been postponed three times.
The Democratic Party and government discussed a further postponement but reached no conclusion.
The parties entered final consultations on whether to delay the tax again.
- Scheduled start
- January 2027
- Tax rate
- 22%, including local income tax
- Basic deduction
- 2.5 million won from annual income from transfers or lending of crypto assets
- Previous delays
- Three postponements since the system was established in 2020
5 sources
What people are saying
We should discuss whether implementing taxation without sufficiently reflecting the characteristics of the virtual asset market and its trading environment could lead to taxpayer distrust and confusion, and how to reflect gaps in tax infrastructure and young people’s concerns.
The government is carefully considering a reasonable approach that the public can accept and that can be implemented stably in the field.
We should review and consider the issue based on realistic conditions, rather than debate tax philosophy.