CoinDesk
South Korea’s ruling Democratic Party is seeking to postpone a tax on cryptocurrency gains from January 2027 to 2029, which would mark the tax’s fourth delay. Lawmakers on the National Assembly’s Strategy and Finance Committee recommended the deferral to party leadership, citing the need for more preparation. The proposal is not yet a change in law, and Finance Minister Lee Hyoung-il supports starting the tax on schedule.
Why it matters
The party says South Korea needs time to prepare for international tax-information sharing, domestic digital-asset legislation and testing systems for reporting tax data between the National Tax Service and exchanges. An international crypto tax-information exchange system is due in 2029, while lawmakers say a General Act on Digital Assets could arrive in the first half of 2027.
The proposed delay would give authorities more time to build those rules and reporting processes before taxing gains. The digital-assets legislation is also expected to address stablecoins and exchanges, though its provisions are still being developed.
Market impact
Under current law, annual cryptocurrency profits above 2.5 million won would face a 20% tax from Jan. 1, 2027, plus a 2% local levy. The Democratic Party’s proposal would defer that start by about two years, but it still needs to move through the legislative process.
The push puts the party’s readiness concerns against the finance minister’s support for the existing schedule. South Korea’s exchange group DAXA has also called for a delay. The timing of the tax and the country’s broader digital-asset rules remain key policy decisions for local investors and platforms.
Frequently asked questions
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What tax does South Korea’s current law set on crypto gains?
Annual cryptocurrency profits above 2.5 million won would face a 20% tax from Jan. 1, 2027, plus a 2% local levy.
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Why does the Democratic Party want to delay the tax?
Lawmakers cite preparation for international tax-information sharing, domestic digital-asset legislation and testing tax reporting between the National Tax Service and exchanges.
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Would the proposed two-year delay change the law immediately?
No. The party’s lawmakers recommended the deferral to party leadership. The proposal still needs to proceed through the legislative process.
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What role could the General Act on Digital Assets play?
The proposed act could set rules for stablecoins and exchanges. Lawmakers say it could arrive in the first half of 2027.
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Who supports starting the tax on its current schedule?
Finance Minister Lee Hyoung-il supports starting the tax on schedule. South Korea’s exchange group DAXA has called for a delay.
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