South Korea Delays Crypto Gains Tax for Fourth Time, to 2029

South Korea will seek to postpone its cryptocurrency gains tax by another two years, moving its planned implementation from January 2027 to 2029. The decision, announced by Finance Minister Lee Hyoung-il on November 5, marks the fourth delay since the tax was first scheduled in 2022.

Under the current plan, annual gains from cryptocurrency transactions exceeding 2.5 million won (around $1,870) would be subject to a 20% income tax, plus a 2% local income tax. The government now says it needs more time to prepare the system for taxing both domestic and overseas transactions.

One reason for the delay is the timeline for exchanging crypto-related tax information with the United States. The two countries are expected to begin sharing this information in 2029. South Korean officials argue that introducing the tax before then could put domestic investors and exchanges at a disadvantage when overseas trading activity is harder to track.

The government also wants to align the tax framework with forthcoming digital asset legislation and improve how it calculates taxable gains. It plans to introduce a provision allowing investors to carry forward losses for up to three years and offset them against future gains.

A public-private working group will develop detailed tax rules and reporting procedures. The Finance Ministry plans to submit the necessary amendments to the National Assembly in 2027. The proposed 2029 start date therefore still requires legislative approval.