South Korea seeks 4th crypto tax delay, targets 2029 start

South Korea’s government has backed postponing tax on cryptocurrency gains by another two years to 2029, in what would be the fourth delay to its implementation.

Finance Minister Lee Hyoung-il announced the proposal Thursday, saying the government would consult lawmakers on postponing the January 2027 implementation date.

The tax would impose a 22% levy, comprising a 20% income tax and 2% local tax, on annual crypto gains exceeding 2.5 million won ($1,860).

The government cited 2029 as the start of information exchange with the US under the Crypto-Asset Reporting Framework (CARF). It said imposing the tax before those exchanges begin could put the domestic market at a disadvantage relative to overseas markets. It also wants to account for changes under planned digital asset legislation.