South Korea is seeking a fourth delay to its 22% crypto tax, months after reaffirming plans to begin taxing digital asset gains in January 2027, Cointelegraph reported. The effort builds on a bill that the ruling Democratic Party’s Park Min-gyu introduced on October 16, according to earlier reports by Blockhead and Bitcoin.com News.
The tax combines 20% national income tax and 2% local tax on annual virtual asset profits above 2.5 million won, about $1,800, with no loss carry-forward. It was first scheduled for 2022 and has since been pushed back three times, most recently to January 1, 2027, which remains the legally binding date. Any change needs approval from the National Assembly.
The bill would start taxation on January 1 of the second year after Korea first exchanges data under the OECD’s Crypto-Asset Reporting Framework. With the first exchange expected in 2027, that points to 2029. Supporters note that the United States is not scheduled to take part until 2029. Lawmakers from the People Power Party have floated delays to 2030 or scrapping the tax altogether.
Pressure is building. A National Assembly petition for another two-year delay passed 50,000 signatures, which qualifies it for formal review, and exchanges have warned that premature taxation could push trading offshore. Officials met the five major exchanges on October 20, but a ministry official said it had no predetermined position.
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Sources:
Cointelegraph: South Korea seeks 4th crypto tax delay, targets 2029 start
Bitcoin.com News: South Korea crypto tax faces fourth delay as 2029 date looms
Blockhead: South Korea meets top crypto exchanges as ruling party bill seeks to push 22% tax to 2029
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