South Korea may postpone its planned tax on cryptocurrency profits until January 2029, marking a fourth delay if approved. The levy is currently due to begin on January 1, 2027, and the presidential office is discussing the postponement proposal with government agencies, according to local reports. Democratic Party lawmaker Park Min-gyu has proposed another two-year delay, and lawmakers could settle the issue during tax law discussions in November or December 2026, when the National Assembly typically finalizes its annual tax code revisions.

A 22% Levy Delayed Three Times

The tax would apply a 22% rate to annual crypto gains above 2.5 million won, combining 20% income tax with a 2% local tax. It would cover profits from selling, transferring, or lending digital assets, with investors paying tax only on gains exceeding the annual basic deduction.

Lawmakers approved the plan in 2020 for a January 2022 launch. Officials subsequently moved the start to 2023, 2025, and 2027, with each change following concerns about recordkeeping, overseas trading data, and safeguards for investors. Because none of those start dates has taken effect, individual investors in South Korea have so far operated without a dedicated gains tax on digital.

US Data Gap Complicates Enforcement

Overseas trading records have emerged as a central concern for tax authorities. South Korea plans to begin exchanging crypto records with other jurisdictions under the OECD's Crypto-Asset Reporting Framework, known as CARF, in 2027. The framework is designed to let participating jurisdictions share crypto transaction data for tax purposes, extending the automatic information-sharing model the Paris-based OECD already applies to bank accounts under the Common Reporting Standard. The United States, however, plans to join CARF in 2029.

A presidential office official reportedly called the lack of US exchange data a major obstacle. Without those records, authorities might need to check foreign trades individually, while domestic exchange platforms face closer scrutiny. The tax debate comes as lawmakers examine new rules crypto businesses, including exchange licensing and stablecoin oversight.

Lawmakers Push for a 2029 Start

Park Min-gyu introduced a bill on October 16 with 13 fellow lawmakers. The proposal would begin crypto taxation two years after countries first exchange transaction records under CARF. On the current schedule, that means January 2029. Rather than fixing a calendar launch, the bill would tie the start date to the data-sharing timeline itself, so the levy would not begin until Korean authorities can see transactions reported abroad.

The opposition People Power Party has also backed further delays, citing gaps in tax systems. Separately, French lawmakers recently backed a proposed tax on certain crypto-to-stablecoin swaps, a measure that differs from South Korea's planned annual gains tax and reflects how differently jurisdictions are approaching digital asset taxation.

Final Decision Still Pending

South Korea's tax authority has continued implementation work despite the dispute. Exchange representatives have asked for clearer rules on recording overseas trades and calculating costs. The wider Digital Asset Basic Act, which would set an overarching framework for the sector, has yet to pass parliament, leaving tax policy to advance separately from the broader rulebook for the industry.

The policy debate is taking place as European officials consider revisions to crypto regulations, discussions that concern market conduct and digital asset services rather than South Korea's proposed income tax. Government and ruling party officials plan further consultations after parliamentary audits. Lawmakers are expected to examine income tax changes in late November or early December, the window in which the fourth delay could be settled.