South Korea’s government has proposed delaying its cryptocurrency gains tax for a fourth time, moving the implementation date from January 2027 to January 2029. Finance Minister Lee Hyoung-il announced the plan on November 5 at the Government Complex in Seoul, saying the ministry would work with the National Assembly to defer the tax.
The decision came one day after Democratic Party of Korea Chairman Kim Min-seok formally requested another postponement, and the government reportedly agreed within 24 hours. Lee acknowledged that repeated delays have damaged government credibility. Previously, at his September confirmation hearing, Lee said implementing taxation from 2027 was desirable, and the government maintained that stance through mid-October. In late October, First Vice Finance Minister Kwon Dae-young met with representatives of the country’s five largest exchanges to assess tax readiness and hear concerns.
Under current law, crypto gains above an annual 2.5 million won allowance, about $1,869, would be taxed at 22%, combining a 20% national rate and a local income surcharge. The framework was written in 2020 but has never taken effect. Start dates have moved from 2022 to 2023, 2025, 2027, and now potentially 2029.
The government says the delay aligns with South Korea’s planned crypto information-sharing arrangement with the United States under the OECD’s Crypto-Asset Reporting Framework in 2029. Lee also cited the upcoming Digital Asset Basic Act, which is expected to change definitions of digital assets and rules for crypto service providers. During the extra two years, the government plans to allow investors to carry losses forward for three years, which current rules do not permit. A public-private working group is expected to present reform proposals in the first half of 2027 and submit legislative changes that same year.
The opposition People Power Party criticized the postponement as political, accusing the government of courting younger crypto investors ahead of the April 2028 general election. Industry groups welcomed the delay, citing difficulty proving cost basis for assets moved through overseas exchanges or private wallets. A Tiger Research and Chainalysis survey found that 73.7% of 2,423 Korean crypto holders opposed the tax under current rules, though 51.5% of opponents said they would accept it if the gaps were fixed. Two petitions passed 50,000 signatures.
For Bitcoin investors, the proposed delay could provide more time for clearer rules, improved reporting infrastructure, and a more balanced taxation framework. Analysts note that a fairer system with loss carryforwards may support long-term participation, although the postponement does not guarantee higher Bitcoin prices or permanently eliminate future taxation.
