South Korea plans to push back the start of its cryptocurrency gains tax by two years, from 2027 to 2029, according to Finance Minister Lee Hyoung-il, as reported by Yonhap News Agency. The government said it intends to work with the National Assembly on the required legislation.
Officials said the delay is tied to South Korea’s plan to begin exchanging virtual asset tax information with the United States in 2029. Taxing crypto gains before that point, the government said, could leave the domestic crypto market at a competitive disadvantage. The stated aim of the postponement is to improve the taxation framework for both domestic and overseas transactions and to raise tax fairness.
Under the current plan, annual individual crypto gains above 2.5 million won, or about $1,869, would be taxed at 22%. If approved, the new delay would mark the fourth postponement since South Korea first moved to introduce a crypto gains tax in 2020. The government is also studying whether investors should be allowed to carry forward losses for up to three years to offset future gains, while setting up a joint public-private task force to refine tax rules across different trading scenarios and advance digital asset legislation. A related amendment is scheduled to be submitted to the National Assembly during the regular 2027 session.
South Korea plans to delay the launch of its cryptocurrency gains tax by two years, moving the start date from 2027 to 2029, Finance Minister Lee Hyoung-il said, according to Yonhap News Agency. The government will discuss the related legislation with the National Assembly.
The government said South Korea is set to begin exchanging virtual asset tax information with the United States in 2029. Imposing the tax before that could put the country’s domestic crypto market at a competitive disadvantage. Officials said the delay is meant to improve the taxation framework for domestic and overseas transactions and increase tax fairness.
Current tax plan and threshold
Under the current proposal, annual individual cryptocurrency gains above 2.5 million won, or about $1,869, would be subject to a 22% tax rate.
If the postponement is approved, it would mark the fourth delay since South Korea first pushed to tax cryptocurrency gains in 2020.
Additional measures under review
The government is also studying a plan that would allow investors to carry forward losses to offset future gains, with a proposed three-year period. It also plans to form a joint public-private working group to refine tax rules for different trading scenarios and to advance digital asset legislation.
The government plans to submit the related amendment to the National Assembly during its regular 2027 session.
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