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South Korea’s presidential office has thrown its weight behind a fourth postponement of the country’s cryptocurrency gains tax, moving the planned January 2027 start date toward 2029, according to Crypto.news. An official quoted in the outlet’s October 25 report said the discussion had shifted toward a delay because the government was not fully equipped to collect the levy.
The tax remains legally scheduled to begin on January 1, 2027. Neither the presidential office’s position nor the ruling Democratic Party’s bill proposing a January 2029 start changes that until the National Assembly passes an amendment. Cryptobriefing reported the move as the fourth postponement since the framework was introduced in 2020 and noted that parliamentary approval is still required to formally shift the date from 2027 to 2029.
Also readSouth Korean Crypto Traders Return as Upbit Volume Jumps 273% to $1.84B
Key facts
- The tax would apply a combined 22% rate — 20% national income tax and 2% local income tax — to annual crypto gains above a 2.5 million won deduction.
- South Korea set the tax up through 2020 amendments to its Income Tax Act, originally for January 2022, then pushed it to 2023, 2025 and January 2027.
- Officials cited the OECD’s Crypto-Asset Reporting Framework and the United States’ planned participation from 2029 as reasons for more preparation time.
- The ruling Democratic Party has introduced legislation for a January 2029 start; opposition People Power Party lawmakers also back postponement, with some seeking a later date or outright repeal, per Crypto.news.
- Cryptobriefing reported that the delay could ease near-term tax burdens on domestic investors, while the National Assembly’s action remains the deciding step.
Why the collection gap matters
The central problem officials describe is information, not rates. Crypto.news reported that without reliable data from foreign platforms, investors trading on domestic venues such as Upbit and Bithumb could face steadier enforcement than those using overseas services or private wallets. The presidential office has framed that asymmetry as a fairness question.
On October 20, government officials were due to meet representatives of five major exchanges to discuss implementation, including how to calculate income from staking, airdrops and decentralized finance. Draft reporting guidelines had been expected in November. An October industry survey cited by Crypto.news found broad support for postponement among digital asset businesses and experts, who warned that uneven reporting rules could push trading offshore.
Also readSouth Korea Crypto Exchange Volume Drops Below KRW 10 Trillion, Lowest Since 2023
Politics and younger investors
Public sentiment has shaped the timing. A separate October 25 report quoted a presidential official saying policymakers viewed crypto investing as part of how young people build wealth. A Gallup Korea survey run October 20–22 found presidential approval among voters in their 20s and 30s had fallen, though the survey did not link that decline to crypto taxation.
Democratic Party leader Kim Min-seok said the issue “needs to be settled this year,” according to Crypto.news. Consultations between the presidential office, the government and the ruling party were expected after October’s parliamentary audit, with lawmakers potentially taking up changes during November’s tax law review.
Why it matters
A delay would spare domestic exchange users a tax bill next year and give authorities more time to build the reporting links they say are needed for even enforcement. It would also extend a pattern that has defined South Korean crypto policy: a law on the books for years that has never actually been applied. The presidential office has not published estimates of how another postponement would affect revenue, trading volumes or collection costs, Crypto.news reported.
What to watch
The decisive step is parliamentary. Lawmakers could take up amendments in November after the government-ruling party consultations that followed the audit. Until an amendment passes, the 22% levy stays scheduled for January 1, 2027.
This article is informational and is not financial advice; cryptocurrency markets are volatile and outcomes are uncertain.
Sources: crypto.news, Cryptobriefing
