Politics · South Korea · 7 hrs ago
South Korea weighs another delay to planned crypto tax
South Korea’s government is reconsidering a planned tax on crypto gains, due to take effect in about two months.
It has met with the country’s five main crypto exchanges and experts to hear their views.
Under the current plan, annual crypto gains above 2.5 million won would be taxed at 22%.
The tax has already been postponed three times since lawmakers approved it in 2020, partly because of concerns about preparation and investor opposition.
Officials worry the tax could prompt investors to trade overseas, where transaction records may be harder to verify and domestic businesses could lose activity.
Some ruling-party lawmakers want a two-year delay, while an economist says the tax should proceed but its rules need to be clear.
The government will attend a parliamentary discussion on November 2, but has not announced whether the tax will be delayed again.
South Korea is reconsidering whether to delay a cryptocurrency tax due to take effect in about two months.
The government held a meeting with major domestic exchanges and experts to hear views on the tax.
The tax has already been postponed three times since legislation was revised in 2020.
Some investors and industry representatives warn that the tax could be unfair and drive trading to overseas exchanges.
A ruling-party lawmaker has proposed delaying the tax for two years, while an economics professor says it should proceed with clearer rules.
- Who
- South Korea’s government, cryptocurrency exchanges and industry experts are discussing the planned tax.
- What
- The government is weighing whether to delay a tax on cryptocurrency income.
- When
- The tax is due in about two months; the government held a meeting on October 20, 2026.
- Where
- Seoul, South Korea.
- Why
- The government is seeking views amid concerns about market effects, investor opposition and tax fairness.
Supporters of proceeding with the tax
Supporters of delaying or revising the tax
Tax fairness
Supporters of proceeding with the tax
The tax should proceed to treat cryptocurrency income consistently with income from other assets.
Supporters of delaying or revising the tax
The tax could be unfair to domestic exchange users and investors.
Market preparation
Supporters of proceeding with the tax
Tax rules should be made more specific to prevent confusion.
Supporters of delaying or revising the tax
Preparation remains inadequate, and overseas transaction records may be difficult to verify.
Industry effects
Supporters of proceeding with the tax
Not stated.
Supporters of delaying or revising the tax
Investors could move to overseas exchanges, weakening South Korea’s cryptocurrency industry.
South Korea revised its Income Tax Act to prepare for taxing cryptocurrency income from 2022.
The government postponed the planned tax three times.
Finance Minister Lee Hyung-il said the government would gather views from various stakeholders.
Democratic Party lawmaker Park Min-gyu introduced a bill to delay the tax for two years, until January 2029.
The government met with cryptocurrency exchanges and experts to hear views on the tax.
The finance ministry is scheduled to attend a parliamentary discussion hosted by the ruling party.
- Planned tax start
- January 2027
- Tax rate and allowance
- 22% on annual gains above 2.5 million won
- Previous postponements
- Three: 2021, 2022 and 2024
- Proposed delay
- Two years, until January 2029
- Market meeting
- October 20, 2026, in Seoul
1 source
What people are saying
I will continue to gather opinions from various stakeholders.
Even though I lost 10 million won last year, I could be subject to tax after making 2.51 million won this year; that is unreasonable.
If investors move to overseas exchanges to avoid taxes, the domestic cryptocurrency industry could shrink.
Considering tax fairness with other assets, such as earned income, and the possibility of raising more state revenue, the tax should proceed as scheduled.