South Korea Considers Pushing Crypto Gains Tax to 2029 in Fourth Delay

South Korea is considering postponing the rollout of its cryptocurrency capital gains tax until 2029, potentially marking the policy's fourth postponement ¹. The presidential office is leaning toward the schedule change because domestic authorities cannot effectively capture trading activity on American platforms before US data sharing begins ¹. South Korea's National Tax Service currently lists an effective date of Jan. 1, 2027 ¹.

Under current statutory provisions, annual net earnings derived from lending or transferring digital assets face a 20% national levy, which rises to 22% when factoring in local income tax, applied above an annual deduction threshold of 2.5 million won ($1,887) ¹. Lawmakers had previously debated the timeline as lawmakers pushed to delay the crypto tax amid concerns over market burdens. Ruling Democratic Party lawmaker Park Min-kyu has drafted an amendment to set the implementation date to Jan. 1, 2029 ¹.

Global Reporting Mismatches

The policy friction stems from fragmented timelines under the OECD's Crypto-Asset Reporting Framework (CARF) ¹. While South Korea, Japan, and the UK intend to start exchanging information in 2027, the US will not begin sharing crypto trading records until 2029 ¹. In contrast, Singapore, Switzerland, and Hong Kong are slated to exchange records in 2028 ¹. Although dozens of governments have committed to tax framework updates—much like when jurisdictions took steps as nations pledged OECD crypto tax reporting—South Korean officials argue that applying the tax ahead of US participation would unfairly disadvantage local platforms ¹.

The proposed postponement marks a departure from statements delivered in July by then-Deputy Prime Minister Koo Yun-cheol, who maintained the January 2027 launch ¹. His successor, Lee Hyung-il, stated during an Oct. 6 parliamentary audit that the administration is collecting feedback from the National Assembly, industry participants, and tax specialists ¹. A final legislative determination requires parliamentary approval to amend the tax statute, with a verdict expected by early December ¹.