South Korea is considering a fourth postponement of its crypto income tax, with January 2029 as a potential new implementation date.
Regulation & Gov ·
South Korea is exploring a fourth delay of its crypto income tax, with January 2029 emerging as the most likely new implementation target. A Blue House official confirmed on October 25 that postponement discussions are underway, with lawmakers and government expected to propose amendments to the Income Tax Act during November's tax law reform debate. The timing aligns with when the United States is scheduled to join the OECD's Crypto-Asset Reporting Framework, beginning data exchanges in 2029.
The delay hinges on a data gap: the U.S. currently does not share taxation information with South Korea, leaving tax authorities unable to track American exchange transactions without manual, account-by-account verification. This asymmetry creates risk that the levy would disproportionately burden domestic exchange users. The 22% tax on gains exceeding 2.5 million won has been suspended three times since its 2020 introduction, and fresh political resistance is mounting through public petitions and cross-party legislative calls for a moratorium.
No final decision has been made. Government officials indicated a determination will likely arrive between late November and early December, contingent on parliamentary debate. A Democratic Party lawmaker has separately introduced a bill proposing the same 2029 postponement, but the outcome remains subject to legislative action.