South Korea crypto tax faces another delay, now targeting 2029

The South Korea crypto tax plan is facing a fourth delay, with the government backing a proposal to move the start date from January 2027 to 2029. Finance Minister Lee Hyung-il announced the proposed deferral on November 5, but it still needs approval from the National Assembly, according to BeInCrypto.

The move comes months after officials reaffirmed the 2027 start date, Cointelegraph reported. The unresolved timetable leaves people with digital asset gains uncertain about when the tax will take effect and what rules will apply.

What we know

South Korea crypto tax proposal targets 2029

Democratic Party leader Kim Min-seok proposed another postponement on Wednesday, November 4, BeInCrypto reported, citing the Seoul Economic Daily. The government accepted the request the following day. The proposal is for a two-year delay, which would move the planned start from January 2027 to 2029.

Cointelegraph described the measure as a bid for a fourth delay. The gains tax was introduced in 2020 and was initially scheduled to begin in 2022. Lawmakers have since postponed it three times, with the latest timetable placing implementation in January 2027.

Under the current plan, the levy is 22% on annual crypto profits above 2.5 million won, or about $1,870, according to BeInCrypto. That rate combines a 20% national tax and a 2% local tax. The outlet gave the example of 5 million won in gains, which would result in 550,000 won, about $410, in tax under the stated threshold and rate.

Officials cited the timing of international reporting rules as one reason for the proposed delay. BeInCrypto reported that the United States is not due to begin exchanging crypto tax information until 2029. The outlet also said South Korea’s framework needs refinement, including rules for carrying losses forward.

South Korea is preparing a broader digital asset law that would establish licensing rules for exchanges and stablecoin issuers, according to BeInCrypto. A joint public-private working group is to draft detailed tax standards by the first half of 2028. These plans are separate from the unresolved question of whether the National Assembly will approve the proposed deferral.

What is still unclear

The central uncertainty is whether the National Assembly will pass the proposed deferral. BeInCrypto reported that the government plans to consult lawmakers and seek approval for the two-year shift. Until that happens, January 2027 remains the scheduled start date; 2029 is a proposal, not a confirmed start.

Detailed implementation standards are also still being developed. The working group’s task is to draft tax standards by the first half of 2028, according to BeInCrypto. The available reporting does not specify what records taxpayers would need, how loss carryforwards would work, or whether lawmakers might change the proposed tax structure.

BeInCrypto said analysts viewed falling support among young investors as a decisive factor behind repeated delays. The report does not provide polling figures to measure that shift. It also relayed criticism that repeated postponements could weaken confidence in tax policy. Those are reported assessments, not a confirmed explanation supported by a poll in the supplied reporting.

South Korea’s proposed timetable differs from Hong Kong’s approach. BeInCrypto reported that Hong Kong lawmakers passed a bill on November 4 adopting the OECD’s Crypto-Asset Reporting Framework. The report said local providers must begin collecting user data in 2027, with information exchanges with partner jurisdictions starting in 2028. That is a reporting regime, not the same policy as South Korea’s proposed tax on gains.

How markets and analysts reacted

Market data available at 10:13 UTC on November 5 showed major cryptocurrencies higher over 24 hours. The figures below are a broad snapshot, not evidence that traders were reacting to South Korea’s tax proposal. CoinGecko supplied the prices and daily changes.

The Crypto Fear & Greed Index was 50, classified as Neutral, on November 5, according to Alternative.me. Neither the market snapshot nor the sentiment reading isolates a response to this policy news. BTC was down 6.52% over 30 days and ETH was down 10.96% over the same period, based on CoinGecko’s data at 10:13 UTC.

What it means for investors

For people tracking South Korea’s crypto tax, the practical distinction is between a proposal and an enacted rule. The 2029 target may give policymakers additional time to define the details, but it does not settle the tax’s start date or the content of its eventual standards. The National Assembly’s approval is still required.

The proposed levy, as described in BeInCrypto’s report, would apply to annual crypto profits above 2.5 million won at a combined rate of 22%. The report also describes a two-year deferral, pending legislative approval. This article summarizes the reported proposal and does not establish an individual’s tax obligations; the supplied reporting does not resolve how the final rules would apply in particular circumstances.

South Korea’s proposal is also unfolding alongside work on a broader digital asset law and detailed tax standards. BeInCrypto reported that the law would set licensing rules for exchanges and stablecoin issuers, while a joint public-private working group is due to draft tax standards by the first half of 2028. Those reported plans do not settle the separate question of when the gains tax will begin.

Bottom line

South Korea’s government has backed a proposed fourth delay to the crypto gains tax, targeting 2029 after the current January 2027 schedule. The National Assembly’s decision and the details of the tax framework are the next developments to watch.

Sources

• South Korea seeks 4th crypto tax delay, targets 2029 start (Cointelegraph)
• South Korea Delays Its Crypto Tax Again, Now Until 2029 (BeInCrypto)

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrencies are highly volatile; always do your own research before investing.