South Korea's Ruling Party Formally Seeks Delay of 2027 Crypto Tax

South Korea's ruling Democratic Party has formally asked the government to postpone the cryptocurrency income tax currently scheduled to take effect on Jan. 1, 2027. Party leader Kim Min-seok announced the request at a leadership meeting in Seoul, according to News1.

Kim argued that the country should first enact the Digital Asset Basic Act, which would establish a framework for the market, and give companies and investors time to adapt. Within the party, a two-year delay is the main option under discussion, Seoul Shinmun reported — a move that would push the start date to 2029. Kim's remarks did not set a replacement date.

The request alone does not change investors' tax obligations: the National Tax Service's current guidance still specifies taxation of crypto sales and lending from Jan. 1, 2027, and any further postponement would require an amendment to the Income Tax Act — the mechanism that will determine whether the scheduled start date moves at all.

Consultations Behind the Party's Position

Kim said the party reached its position after consultations with the government and crypto businesses, weighing taxation principles, domestic industry conditions, and fairness between users, according to MoneyToday's account of the meeting. He pledged to define the postponement period clearly and to prepare overseas transaction information, computer-system testing, and taxpayer guidance — preparations aimed at the same infrastructure gaps he flagged in October.

The formal request advances a debate Kim had still described as open at an Oct. 28 party-government meeting. In those published remarks, he noted that the Digital Asset Basic Act had not been enacted and questioned whether gaps in tax infrastructure and the unequal treatment of domestic and overseas exchange users warranted delaying implementation.

What the Delay Bill Would Change

A bill introduced by lawmaker Park Min-gyu on Oct. 16 would tie taxation to international information sharing rather than simply writing 2029 into law. Its text sets the start at Jan. 1 of the second year following the year in which crypto transaction information is first exchanged under the relevant international-tax provisions — a trigger-based design that leaves the tax without a fixed calendar start until such exchanges begin.

The bill's sponsors argue that insufficient overseas records could concentrate enforcement on domestic exchange users. Their proposal would also move the valuation date used to calculate acquisition costs for existing holdings and shift related exchange transaction-reporting provisions alongside the new tax start date.

Under the existing framework, resident investors receive an annual deduction of 2.5 million won, with a 20% national income-tax rate applied to the remainder of their net crypto income. The tax authority says annual gains and losses are combined, with income reported the following May.

The latest enacted postponement came through a December 2024 amendment that pushed implementation back two years; The Defiant previously reported the political agreement behind that delay. Until another amendment passes, the first taxable year remains 2027, with returns due in May 2028 under the tax authority's reporting schedule.