South Korea's ruling party proposes delaying crypto income tax
South Korea's ruling Democratic Party has formally proposed postponing the country's crypto income tax beyond its scheduled Jan. 1, 2027 start date, seeking more time to enact a broader regulatory framework.
South Korea's ruling Democratic Party has formally proposed that the government defer the country's crypto income tax, which is currently scheduled to take effect on Jan. 1, 2027, according to local reports. Party leader Kim Min-seok announced the proposal during a Supreme Council meeting at the National Assembly on Nov. 4, arguing that the government should first enact the Digital Asset Basic Act to establish ground rules and give companies and investors an adaptation period before gains are taxed.[1][3][5]
The tax was introduced through a 2020 amendment to the Income Tax Act and levies a 22% rate, including local tax, on virtual asset income exceeding 2.5 million won. The measure has already been postponed three times, meaning another deferral would mark the fourth delay. While Kim promised to clearly define the deferral timeframe this time around, he did not specify an exact duration during his remarks.[5]
Lawmakers and officials have largely discussed a two-year delay that would push implementation to 2029, as South Korea also awaits global tax-sharing frameworks. The formal proposal follows an agreement among Democratic Party members on the National Assembly's finance committee and consultations with industry businesses. To make the postponement official, the National Assembly will need to pass another amendment to the Income Tax Act ahead of the January 2027 deadline.[2][4][5]
Key facts
- South Korea's crypto income tax is currently scheduled to take effect on Jan. 1, 2027.
- Democratic Party leader Kim Min-seok announced that the party formally proposed a deferral of virtual asset taxation to the government.
- Kim argued the country must first enact the Digital Asset Basic Act and give investors and businesses an adjustment period.
- The crypto tax imposes a 22% rate, including local tax, on crypto earnings exceeding 2.5 million won.
- The tax has been postponed three times since being added to the Income Tax Act in 2020, making a new delay the fourth.
- Discussions among lawmakers have centered on a two-year delay that would postpone the tax to 2029.
- The delay requires the National Assembly to amend the Income Tax Act before Jan. 1, 2027 to become law.
Sources · 5 sources
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The BlockArticle ·
South Korea’s ruling party formally proposes deferral of crypto income tax The party leader stated that the country should first enact the Digital Asset Basic Act, a comprehensive legal framework for crypto.
Open source - CO
CoindeskArticle ·
South Korea's ruling party wants to delay its crypto tax again South Korea's ruling party wants to delay crypto tax by about two years, as it waits for global tax-sharing rules and new digital assets law.
Open source - TB
The Block@TheBlockCoPost on X ·
NEW: South Korea's ruling Democratic Party leader Kim Min-seok said he has formally proposed delaying the crypto income tax to the government, according to News1. The tax law is scheduled to take effect on Jan. 1, 2027. Kim said at a party council meeting that the country should first enact the Digital Asset Basic Act, a legal framework for crypto, and allow companies and investors to adapt before taxing crypto gains.
Open source - CB
Crypto BriefingArticle ·
South Korea ruling party proposes crypto tax delay to 2029 for market readiness The proposed crypto tax delay in South Korea could boost market confidence, fostering investment and growth in the digital asset sector. The post South Korea ruling party proposes crypto tax delay to 2029 for market readiness appeared first on Crypto Briefing .
Open source - UN
UnchainedArticle ·
Korea’s Democrats Back a Crypto Tax Delay, Promise a Firm End Date They Haven’t Named The crypto income tax South Korea is due to start collecting on Jan. 1, 2027 should be put off, the ruling Democratic Party formally told the government, though it has yet to say for how long. “The Democratic Party formally proposes to the government a deferral of taxation on virtual asset income,” the Democratic Party chief Kim Min-seok told the party’s Supreme Council in the National Assembly on Nov. 4, according to Korean news agency News1. Kim spoke in Korean; the quotes in this story are Unchained’s translations. Kim said the party reached its position after consultations between the party and the government, centered on the Assembly’s finance committee, and a meeting with crypto businesses. “We agreed that it is desirable to first enact the Digital Asset Basic Act to set up the overall framework and give companies and investors an adaptation period,” he said. That law, which would set the ground rules for the industry, has not yet been enacted. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . No End Date Yet Kim acknowledged the tax had been put off before. “This time we will clearly set the deferral period and thoroughly prepare preceding tasks such as use of overseas transaction information, computer verification, and tax guidance methods,” he said. He did not name that period. Among Democratic Party lawmakers on the finance committee, who agreed on Nov. 3 to recommend a delay, two years has mainly been discussed, Electronic Times reported , with a final call expected after high-level talks between the party and the government. Government officials were reportedly leaning toward a January 2029 start, Unchained reported on Oct. 26. The tax would apply a 22% rate, including local tax, to crypto income above 2.5 million won . It was written into law through a 2020 amendment to the Income Tax Act and has been pushed back three times, so another postponement would be the fourth. Deputy Prime Minister and Finance Minister Lee Hyung-il told an Oct. 22 parliamentary audit that he would decide after careful deliberation, Fnnews reported . What Comes Next Kim’s statement turns a committee recommendation into the ruling party’s official position, but the delay is not law yet: the National Assembly still has to amend the Income Tax Act before Jan. 1, 2027. With Kim promising a fixed period this time, the length of the delay is now the main open question. Kim said at the meeting that the party would move faster on changes to the legislation and tax code, so that “companies actively invest in new services and users can trade with peace of mind.” Related Listen: Weekly Recap: Trump’s Crypto Reserve Controversy, Cardano’s Summit Snub The post Korea’s Democrats Back a Crypto Tax Delay, Promise a Firm End Date They Haven’t Named appeared first on Unchained .
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