South Korea’s main opposition People Power Party has introduced legislation to push back the effective date of the country’s cryptocurrency investment tax by three years, from January 1, 2027, to January 1, 2030. The move comes just days after the government reaffirmed its commitment to the existing timeline in its 2026 tax reform proposal.
Under the current Income Tax Act, annual gains above 2.5 million won (about $1,800) from crypto transfers or lending are set to be taxed as “other income” at a combined rate of 22% (20% national tax plus 2% local tax). The tax would apply to assets such as Bitcoin and Ethereum, with the first reporting due in May 2028 for 2027 earnings.
Lawmaker Jeong Seong-guk of the People Power Party plans to amend the Income Tax Act to shift the implementation date to 2030. He argues the additional three years would allow lawmakers and authorities to review the virtual asset tax system, establish investor protection measures, and build necessary infrastructure before enforcement begins. Jeong said, “Cryptocurrency taxation should begin only after rules protecting investors and the infrastructure needed for fair taxation have been sufficiently established.”
The proposal adds another avenue for opposition to challenge the tax. In March, People Power Party lawmaker Song Eon-seok introduced a separate bill to completely abolish the crypto tax provision (Article 21, Paragraph 1, Item 27 of the Income Tax Act). Opposition lawmakers argue the tax creates unequal treatment between crypto and stock investors, as South Korea recently scrapped a planned financial investment income tax for ordinary stock gains. They also warn that the levy could push trading activity away from domestic platforms like Upbit, Bithumb, Coinone, and Korbit toward overseas exchanges or decentralized services.
Finance Minister Koo Yun-cheol, however, has defended the 2027 start, stating the government intends to proceed on schedule and consider improvements after gaining operational experience. The government notes that much of the required reporting infrastructure is already ready and that it expects to begin receiving overseas crypto transaction data next year under the OECD’s Crypto-Asset Reporting Framework, with 48 jurisdictions participating.
The debate unfolds alongside broader regulatory efforts. South Korea’s Financial Services Commission is preparing a Digital Asset Basic Act to consolidate rules on stablecoins, exchange requirements, disclosures, and internal controls. Jeong has also been a leading voice in supporting institutional crypto investment, having previously proposed legislation to allow spot ETFs holding Bitcoin and Ethereum. His new tax delay bill, along with the repeal bill, ensures multiple legislative paths remain in play as the National Assembly reviews the country’s crypto tax framework.
