South Korea Proposes Crypto Tax Delay Until 2029

South Korea’s government has proposed delaying the start of its cryptocurrency gains tax by two years, from January 2027 to January 2029, but the change requires approval by the National Assembly. Finance Minister Lee Hyungil announced the proposal on November 5 and said the government would consult lawmakers. The existing framework sets a combined 22% tax on annual cryptocurrency profits above 2.5 million won. The rate combines a 20% national tax and a 2% local tax. The proposed delay would postpone the framework’s planned start; it would not remove the tax. The government’s stated reasons include further work on tax rules, including how losses may be carried forward, and coordination with international reporting arrangements. The United States is scheduled to begin exchanging cryptocurrency tax information in 2029, according to the government’s rationale. South Korea is also preparing a broader digital-asset regulatory framework. Officials intend to establish a public-private working group to draft detailed tax standards, with completion targeted for the first half of 2028. The government has also cited the need to refine the tax framework. One report described a proposed...