News ยท Regulation & Policy
Democratic Party chief Kim Min-seok cited the need to enact foundational digital asset regulations before taxing virtual asset gains.
Key point 1 of 3
01
South Korea's Democratic Party formally proposed deferring the 22% virtual asset income tax scheduled for Jan. 1, 2027.
Key point 2 of 3
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Party leader Kim Min-seok said the Digital Asset Basic Act must be enacted before gains are taxed, though no deferral length was specified.
Key point 3 of 3
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The tax delay requires an amendment to the Income Tax Act by the National Assembly before Jan. 1, 2027, to become law.
Context
South Korea first approved taxing crypto income above 2.5 million won at 22% via a 2020 revision to the Income Tax Act, but lawmakers have delayed enforcement three times.
Why it matters
Domestic crypto exchanges and retail investors gain extended tax relief and compliance runway while lawmakers work to structure the foundational Digital Asset Basic Act.
What to watch
A formal legislative amendment to the Income Tax Act in the National Assembly and joint party-government discussions regarding whether to postpone to 2029.
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