South Korea Weighs 2029 Delay for 22% Crypto Gains Tax

South Korea’s government is considering delaying the implementation of its cryptocurrency gains tax until 2029, according to South Korean outlet Newsis. The policy is currently scheduled to take effect on Jan. 1, 2027, but a Blue House official said officials were discussing another postponement.

The proposed tax applies a 22% rate to cryptocurrency investors whose annual gains exceed ₩2.5 million, or about $1,883. It consists of a 20% income tax and a 2% local tax. First proposed in 2020, the digital asset tax has already been delayed several times.

A key reason for the potential extension is the timeline for international tax information sharing. The United States is expected to begin participating in the OECD’s Crypto-Asset Reporting Framework in 2029, while South Korea plans to implement the framework in 2027. A South Korean official said the delay was being considered because the US represents nearly half of the country’s virtual asset market.

The National Tax Service still lists Jan. 1, 2027, as the crypto tax’s start date. Any move to 2029 would require a formal revision and would give taxpayers and digital asset exchanges additional time to prepare for reporting obligations under the expanded tax regime.