South Korea’s crypto tax gets four postponements — now targeting 2029 🇰🇷

South Korea’s government has backed postponing taxation of cryptocurrency gains by another two years to 2029, marking the fourth delay to the policy’s implementation. Finance Minister Lee Hyoung-il announced the proposal Thursday, saying the government would consult lawmakers on moving the January 2027 start date.

The planned 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 said 2029 would coincide with the start of information exchanges with the US under the Crypto-Asset Reporting Framework (CARF), adding that imposing the tax before those exchanges begin could disadvantage the domestic market relative to overseas markets.

Officials also said the proposal would account for changes expected under planned digital asset legislation and introduce a three-year loss carryforward provision. Under the provision, investors could offset crypto losses against profits earned over the following three years.

The government plans to submit amendments to improve the tax system during parliament’s regular session in 2027, with detailed tax guidelines planned for the first half of 2028. Originally scheduled to take effect in January 2022, the tax was subsequently postponed to 2023, 2025 and 2027. The latest proposal reverses the government’s previous position, announced by a Finance Ministry official in May that implementation would proceed in 2027.

South Korean finance officials have recently engaged with major crypto exchanges amid growing calls to postpone the tax. Industry representatives cited unresolved tax rules for different transaction types and insufficient time to prepare the necessary infrastructure.