South Korea lawmakers mull pushing crypto tax implementation to 2029

The Seoul government is reportedly weighing another delay for a 2020 income tax policy on digital assets, citing concerns about receiving data from US officials.

Government officials in South Korea are considering delaying the country’s cryptocurrency tax policy, currently expected to take effect in January 2027.

According to a Monday report from South Korean news outlet Newsis, the crypto income tax could be pushed to 2029, in part because that is the earliest officials will be able to share information with the US on taxes related to digital asset exchanges.

The policy would impose a 22% tax on crypto gains — 20% from income and 2% as part of a local tax — for investors earning more than 2.5 million Korean won ($1,883) annually. It has already been delayed several times since it was first proposed in 2020.

“We are discussing postponing the implementation of virtual asset taxation,” said an official from the Blue House presidential residence.

The US is scheduled to begin participating in the OECD’s Crypto-Asset Reporting Framework in 2029, while South Korea will implement the rules starting in 2027. A South Korean official reportedly said the country was considering another delay to the crypto tax because the US “accounts for nearly half of the virtual asset market.”

As of Monday, South Korea’s National Tax Service listed Jan. 1, 2027, as the start date for the crypto tax.