South Korea Seeks 3-Year Delay on Virtual-Asset Tax Implementation

South Korea's ruling People Power Party is seeking to delay the implementation of virtual-asset income taxation by three years. Rep. Jeong Seong-guk plans to introduce an amendment to the income tax law, moving the start date from January 1, 2027 to January 1, 2030.

The proposed delay aims to improve predictability for taxpayers and reduce confusion during implementation. According to Rep. Jeong, virtual-asset taxation should be introduced only after investor protection measures and a fair taxation framework are in place. He stated that lawmakers need enough time to overhaul the system and minimize market disruption.

Currently, income from the transfer or lending of virtual assets will be classified as miscellaneous income and taxed starting in January 2027. Annual gains exceeding 2.5 million won ($1,800) would be subject to a 22% rate, made up of a 20% miscellaneous income tax and a 2% local income tax.

The People Power Party has argued that the tax should be abolished or delayed due to concerns about fairness. They point out that ordinary investors effectively pay no tax on stock capital gains following the abolition of the financial investment income tax.