South Korea's crypto tax
Where it stands now. South Korea's ruling and opposition parties provisionally agreed on 11 November to move the 22% crypto tax from 1 January 2027 to 1 January 2029; the tax subcommittee's final vote is still to come.
The record 5 developments
South Korea's ruling and opposition parties provisionally agree to delay the crypto tax to 2029
What happened. South Korea's ruling and opposition parties provisionally agreed on 11 November, in the National Assembly's tax subcommittee, to delay the crypto income tax by two years, to 2029, Digital Asset and TechFlow reported. The final vote is due on the subcommittee's last day of review; a loss carry-forward, a higher basic deduction and an early duty on crypto businesses to submit tax data are still being discussed, Digital Asset reported.
Why it matters. People Power Party lawmaker Bae Jun-young, the opposition's lead member on the committee, said that for now the tax can be seen as delayed by two years, Digital Asset reported. It would be the tax's fourth delay; Deputy Prime Minister Lee Hyoung-il told the committee the same day that he took it seriously and expressed regret, Digital Asset reported. People Power Party lawmaker Song Eon-seok says the tax should be abolished rather than delayed, Digital Asset and PANews reported; the Citizens' Coalition for Economic Justice says it should start in 2027 as planned, Digital Asset reported.
- On 9 November ten lawmakers led by the Democratic Party's Ahn Do-geol filed an Income Tax Act amendment moving the start from 1 January 2027 to 1 January 2029 and letting investors carry losses forward for three years, Digital Asset reported.
- The government agreed to the delay but said the duty on crypto businesses to submit tax data should start early; Ahn's bill would start it on 1 January 2027, Digital Asset reported.
- The government opposed raising the basic deduction, Democratic Party lawmaker Oh Gi-hyoung said; a People Power Party bill by Choi Eun-seok would raise it from 2.5 million won to 50 million won, which the committee's review paper said goes against a 'broad base, low rate' principle, Digital Asset reported.
- The committee's review paper said a loss carry-forward could make crypto investing more speculative; Choi's bill proposes five years and Ahn's three, and Oh said no conclusion was reached, Digital Asset reported.
Read the originals (12), usually in their own language
- Ruling and opposition parties provisionally agree two-year crypto tax deferral... no conclusion on loss carry-forward · Digital Asset, headline translated by us
- South Korea's ruling and opposition parties tentatively agree to delay virtual asset taxation by two years · TechFlow, headline translated by us
- [Breaking] Ruling and opposition parties provisionally agree on crypto 'tax deferral' in tax subcommittee... final decision later · Digital Asset, headline translated by us
- National Assembly finance committee's tax subcommittee reviews crypto tax deferral bills · Digital Asset, headline translated by us
- "Two-year deferral, three-year loss carry-forward"... Democratic Party files crypto tax deferral bill · Digital Asset, headline translated by us
- Deputy Prime Minister Lee Hyoung-il: "I take another two-year crypto tax deferral seriously... I express regret" · Digital Asset, headline translated by us
- Government: "Crypto businesses' duty to submit tax data should take effect early" · Digital Asset, headline translated by us
- Finance committee tax subcommittee: "Crypto loss carry-forward raises concern of stronger speculative character" · Digital Asset, headline translated by us
- Finance committee tax subcommittee view: "Raising crypto basic deduction violates the 'broad base, low rate' principle" · Digital Asset, headline translated by us
- People Power Party's Song Eon-seok: "For the crypto tax, abolition, not deferral, is the answer" · Digital Asset, headline translated by us
- South Korean opposition lawmaker calls for scrapping the crypto income tax plan · PANews, headline translated by us
- CCEJ: "Crypto tax should start next year... we condemn the Democratic Party's retreat on tax policy" · Digital Asset, headline translated by us
South Korea's government moves to delay its crypto tax by two years, to 2029
What happened. South Korea's Deputy Prime Minister and Minister of Economy and Finance, Lee Hyoung-il, said on 5 November that the government will seek a two-year delay of the crypto income tax due in 2027, to 2029, in talks with the National Assembly, Digital Asset reported. The government also plans to let investors carry losses forward for three years. The day before, ruling Democratic Party leader Kim Min-seok had formally proposed a delay to the government, NewEconomy and Blockcast reported.
Why it matters. The government said tax information exchange with the United States begins in 2029, and that taxing now could leave the domestic market at a disadvantage to overseas ones, Digital Asset reported. Kim Min-seok said a Digital Asset Basic Act should come first, with time for companies and investors to adjust, NewEconomy reported. The People Power Party welcomed the Democratic Party's proposal to delay the tax, while the civic group People's Solidarity for Participatory Democracy said the delay damages tax fairness, according to Digital Asset headlines.
- Each loss could be set against gains in the following three years, so a 2029 loss could be offset against 2030–2032 gains; ministry tax chief Cho Man-hee said the carry-forward itself is not limited to three years, Digital Asset reported.
- For crypto bought before the tax starts, the cost would be the higher of the market price on 31 December 2028 or the actual purchase price; losses already realised by selling before 2029 cannot be carried forward, Digital Asset reported.
- The government plans a public-private working group, proposals by the first half of 2027 for that year's regular Assembly session, and detailed tax criteria in the first half of 2028, Digital Asset reported.
- On 3 November Democratic Party members of the Assembly's finance committee met in private; afterwards Oh Gi-hyoung said most felt a preparation period before the tax was unavoidable, NewEconomy reported.
- Under the OECD's Crypto-Asset Reporting Framework (CARF), South Korea is due to start exchanging data in 2027 and the United States in 2029, NewEconomy and Blockcast reported.
Read the originals (9), usually in their own language
- Government: "Crypto tax deferred two years... three-year loss carry-forward" · Digital Asset, headline translated by us
- [Q&A] Government: "Crypto loss carry-forward: each loss deductible for three years... deemed acquisition cost applies to pre-2029 trades" · Digital Asset, headline translated by us
- South Korean deputy prime minister: virtual asset income tax delayed to 2029 · TechFlow, headline translated by us
- South Korean government to formally push a two-year delay of its planned digital asset income tax · PANews, headline translated by us
- South Korea's ruling party formally proposes another delay to crypto taxation; two-year delay favoured · NewEconomy, headline translated by us
- South Korea's 22% crypto tax may be delayed to 2029! Ruling party formally asks for a delay, a fourth postponement in sight · Blockcast, headline translated by us
- South Korea proposes delaying crypto tax for the fourth time · Coin68, headline translated by us
- People Power Party: "Crypto tax deferral: things come right in the end... we welcome a natural result" · Digital Asset, headline translated by us
- PSPD: "Push to defer crypto tax undermines tax fairness... we condemn the government and ruling party" · Digital Asset, headline translated by us
South Korea's ruling party puts off its crypto tax decision by one to two weeks
What happened. South Korea's ruling Democratic Party and the government met on 28 October and did not decide whether the crypto tax due on 1 January 2027 should go ahead. On 30 October the party met crypto businesses, again without a decision; it plans to set its position within one to two weeks, Digital Asset reported. The party has put forward a bill that would move the start to 2029.
Why it matters. Committee chair Cho Seung-rae said the government's notice setting the tax rules should wait until a decision, and that he understood the government would do so. Party policy chief Kwon Chil-seung said leaving the uncertainty in place any longer would be costly for markets and investors.
- The party was due to meet representatives of Upbit, Bithumb, Coinone, Korbit and Gopax, PANews reported on 29 October, citing The Block.
- In a poll by the Korea Society Opinion Institute published on 28 October, 41.6% said the tax should start as planned, 35.1% said it should be delayed and 23.3% were unsure. Among people in their 20s and 30s, more chose a delay (49.2% and 52%).
- The bill gives a lack of infrastructure and difficulty getting trading data as reasons for the delay, PANews reported.
Read the originals (7), usually in their own language
- Democratic Party fails to decide on crypto tax deferral after all... 'decision within 1-2 weeks' · Digital Asset, headline translated by us
- Party and government reach no conclusion on crypto taxation... to review fairness and institutional fixes (roundup) · Digital Asset, headline translated by us
- National Assembly committee: 'Crypto tax notice should be delayed... conclusion quickly' · Digital Asset, headline translated by us
- South Korea's ruling party to meet five major local crypto exchanges on Friday on whether to delay crypto tax · PANews, headline translated by us
- South Korea considers delaying crypto tax to 2029 · Coin68, headline translated by us
- Democratic Party policy committee: 'Crypto tax uncertainty can't be left alone... position to be settled soon' · Digital Asset, headline translated by us
- 41.6% say crypto tax 'as scheduled'... deferral prevails among those in their 20s and 30s · Digital Asset, headline translated by us
South Korea leans toward delaying its crypto tax a fourth time
What happened. South Korea's presidential office is leaning toward postponing the crypto income tax due to start on 1 January 2027, the Korea Economic Daily reported on 26 October. It said talks are continuing and nothing is decided. The tax is 22% on income from selling or lending crypto, above a yearly allowance of 2.5 million won. A delay would be the fourth.
Why it matters. The reasons reported include trouble getting data on trades made abroad. The government also worries that taxing before the United States joins the international crypto reporting system (CARF), planned for 2029, would make Koreans' gains on US exchanges hard to track. The ruling party is split, and the bill is due for review next month.
- One reason the presidential office is weighing a delay is how many young people invest: regulators' data show 44.1% of Korea's crypto users in the first half of this year were in their 30s or younger.
- The Korea Economic Daily ran the report as an exclusive; other outlets repeated it.
Read the originals (5), usually in their own language
- South Korea's crypto asset tax may face a fourth postponement, with the Blue House leaning toward delaying implementation. · TechFlow
- South Korea considers delaying 22% crypto tax until 2029 · Liputan6, headline translated by us
- South Korea set to postpone 22% crypto tax to 2029, the 4th postponement as the system is not ready · Siam Blockchain, headline translated by us
- South Korea's presidential office leans toward delaying crypto tax a fourth time; ruling party proposes starting in 2029 · ABMedia, headline translated by us
- Park Soo-young: 'Democratic Party should also set a party line on deferring digital asset taxation' · TokenPost, headline translated by us
South Korea prepares crypto tax rules as talk of a delay grows
South Korea's National Tax Service said on 13 October it is preparing a notice setting crypto tax criteria for around November, ahead of the tax starting in January 2027, CoinPost reported. Block Media reported that the official who led that work has been named presidential chief of staff, while the ruling Democratic Party pushes a bill to delay the tax.
Read the originals (2), usually in their own language
- South Korea to announce crypto tax criteria as early as November; 22% on gains above about 300,000 yen · CoinPost, headline translated by us
- Ruling party spreads talk of delaying crypto tax... Lim Kwang-hyun's appointment complicates calculations · Block Media, headline translated by us