South Korea's ruling party formally proposes deferral of crypto income tax
If approved, the proposal would mark the fourth postponement of the levy, which was first legislated in 2020.

Quick Take
- South Korea’s ruling party leader has officially proposed that the government delay the crypto tax that is currently set to take effect on Jan. 1, 2027.
- The party leader stated that the country should first enact the Digital Asset Basic Act, a comprehensive legal framework for crypto.
South Korea's ruling party leader has officially proposed that the government further delay the crypto tax.
Democratic Party leader Kim Min-seok said at a party supreme council meeting at the National Assembly that the decision followed consultations through the Strategy and Finance Committee, government-party talks, and meetings with crypto asset businesses, local news outlet News1 reported on Wednesday.
Kim stated that party members agreed that the country should first enact the Digital Asset Basic Act, a comprehensive legal framework for crypto, and give companies and investors time to adapt to new rules.
The tax plan, currently scheduled to take effect on Jan. 1, 2027, would impose a 22% tax (including local tax) on annual gains from the transfer or lending of crypto assets above a basic deduction of 2.5 million won ($1,868.7). If approved, the proposal would mark the fourth postponement of the levy, which was first legislated in 2020.
The ruling party leader acknowledged past deferrals of the tax and said that this time the party would set a clear deferral period while thoroughly preparing prerequisites, including use of overseas transaction information, IT system verification and taxpayer guidance.
Last week, South Korea's presidential office was reportedly discussing postponement of the levy until 2029 to align with the U.S. timeline for joining the OECD's Crypto-Asset Reporting Framework.

