South Korea Weighs Fourth Crypto Tax Delay, Eyes 2029 Start

South Korea is likely to postpone its tax on cryptocurrency gains for a fourth time, moving the start date to 2029, according to a report from local outlet Newsis. The levy is currently scheduled to take effect on Jan. 1, 2027.

The presidential office is discussing a further delay with relevant government agencies, Newsis reported. The proposed postponement would align Korea with the United States' timeline under the OECD's Crypto-Asset Reporting Framework, or CARF.

What would the tax actually charge?

Korea first introduced the crypto tax plan in 2020 through an amendment to the Income Tax Act. The measure would apply a 22% rate, including local tax, to annual gains from transferring or lending crypto assets, after a basic deduction of 2.5 million won, roughly $1,888 at current rates.

The tax was originally set for 2022. It has already been delayed three times as local traders and experts raised concerns over tax infrastructure and investor protection. A further postponement would mark the fourth delay.

Why is CARF the deciding factor?

CARF is the international standard for bringing crypto under global tax rules, enabling automatic exchange of transaction data between tax authorities. Korea is among dozens of jurisdictions set to begin exchanging crypto transaction data under CARF in 2027. The U.S. is scheduled to start participating only in 2029.

A presidential office official reportedly said the unavailability of U.S. trading data is the biggest bottleneck for crypto taxation. Without it, Korean authorities would need to track overseas transactions individually, and users of domestic platforms would face an increased compliance burden.

Legislation is already moving in the same direction. A bill introduced by ruling Democratic Party lawmaker Park Min-gyu proposes setting the tax start date at Jan. 1, 2029, matching the U.S. CARF schedule.

What happens next?

The government is expected to finalize its position through inter-agency consultations. A final decision would come through National Assembly tax law revisions, with discussions expected between late November and early December, according to the Newsis report.

For Korean exchanges and taxpayers, the delay means at least two more years without a crypto-specific gains tax, extending a limbo that began when the 2020 amendment first passed. For policymakers, it ties Korea's domestic tax timetable to a U.S. data-sharing schedule that Washington controls. The National Assembly's late-November window is the next concrete checkpoint for whether the 2027 date survives.