South Korean lawmakers are considering another delay for the country’s cryptocurrency tax policy, which was originally set to take effect in January 2027. According to a report from Newsis, the tax implementation may now be pushed back to 2029 due to challenges in obtaining data from US officials. The policy, first proposed in 2020, aims to impose a 22% tax on crypto gains, comprising 20% income tax and 2% local tax, for investors earning more than 2.5 million Korean won ($1,883) annually.
An official from the Blue House presidential residence confirmed that discussions are underway to postpone the tax. The delay is partly attributed to the US’s participation in the OECD’s Crypto-Asset Reporting Framework, which begins in 2029. South Korea is set to implement these rules starting in 2027, but officials argue that the US market’s significant influence, accounting for nearly half of the virtual asset market, necessitates further coordination.
As of Monday, South Korea’s National Tax Service still lists January 1, 2027, as the start date for the crypto tax. However, the ongoing discussions suggest that this timeline may change, reflecting the government’s cautious approach to ensuring compliance and data sharing with international partners.