South Korea could postpone its planned cryptocurrency income tax by another three years under a new proposal from People Power Party lawmaker Jeong Seong-guk, who seeks to move the tax's effective date from January 1, 2027, to January 1, 2030. The bill would keep the existing tax provisions unchanged but grant lawmakers additional time to revise the regulatory framework. The proposal carries particular weight given South Korea's status as one of the world's largest retail cryptocurrency trading markets, where policy shifts affect millions of active investors.

Delay Proposal Takes Shape

Jeong plans to amend the Income Tax Act to change the scheduled implementation date. He contends that South Korea needs more time to review tax rules and investor protection measures before enforcement begins. The delay would also allow authorities to prepare the necessary administrative procedures.

Under the current framework, South Korea classifies profits from cryptocurrency transfers and lending as other income. Annual gains exceeding 2.5 million won — approximately $1,900 at current exchange rates — would be subject to a combined tax rate of 22%, comprising a 20% national income tax and a 2% local income tax. The planned levy covers virtual assets such as Bitcoin and Ethereum under existing legislation.

Jeong's proposal presents an alternative to a separate opposition bill that seeks to eliminate the crypto tax entirely.

Government Maintains 2027 Start Date

The South Korean government retained the 2027 implementation date in its most recent tax reform proposal. The Ministry of Economy and Finance did not include another postponement in that package, though the National Assembly retains the authority to modify the timetable before the current start date takes effect.

Finance Minister Koo Yun-cheol has expressed support for introducing the levy under the existing schedule. He has also indicated that authorities could refine the framework after gaining practical experience with its operation. That position stands in contrast to opposition lawmakers pursuing either another delay or a full repeal.

South Korea has already postponed cryptocurrency taxation multiple times since lawmakers first approved the framework in 2020. Implementation was originally scheduled for January 2022 before being moved to 2023, then to 2025, and most recently to January 2027. Each postponement has drawn debate over whether the repeated delays undermine regulatory credibility or reflect prudent caution given the evolving global landscape for digital asset oversight.

Broader Push for Tax Policy Changes

People Power Party lawmakers argue that the current framework creates disparities between different asset classes. South Korea previously scrapped its planned financial investment income tax for most ordinary stock market gains. The opposition contends that taxing cryptocurrency profits while many stock market gains remain untaxed produces an inconsistent structure.

Lawmaker Song Eon-seok has separately proposed removing the cryptocurrency income tax provision from the Income Tax Act altogether. The National Assembly's Finance and Economic Planning Committee is currently reviewing that proposal. However, government and ruling-party support for taxation could make a complete repeal difficult to achieve.

Wider Digital Asset Regulation Continues

South Korea is simultaneously developing broader digital asset regulations alongside the tax debate. Regulators are preparing legislation covering stablecoins, cryptocurrency exchanges, disclosure requirements, internal controls, and trading infrastructure.

Jeong has also backed legislation that would permit institutional cryptocurrency exposure through spot exchange-traded funds. The array of pending measures reflects South Korea's broader effort to build a comprehensive digital asset regime that addresses taxation, market structure, and investor protection in parallel.