South Korea is seeking to postpone the 22% crypto tax again, which would be the fourth extension of this tax regime. Previously, South Korea had just reaffirmed its plan to levy taxes on digital asset earnings starting in January 2027.
The South Korean government has agreed to postpone the implementation of the cryptocurrency income tax for another two years, until 2029. If approved, this will be the fourth extension of the deadline for the implementation of this tax regime.
South Korean Finance Minister Lee Hyung-bok announced this proposal on Thursday, stating that the government would negotiate with lawmakers regarding the postponement of the implementation date from January 2027.
This tax will impose a 22% levy on the portion of annual crypto earnings that exceed 2.5 million Korean won (1,860 US dollars), which includes a 20% income tax and a 2% local tax.
The government stated that 2029 is the scheduled time to begin information exchange with the United States in accordance with the "Cryptocurrency Reporting Framework" ( CARF ). The government argues that if taxation is implemented before these exchanges commence, the domestic market may be at a disadvantage compared to overseas markets. The government also hopes to take into consideration the planned legislative changes regarding digital assets.
Officials also stated that they plan to introduce a three-year loss carryforward clause, allowing investors to deduct their crypto losses from profits obtained in the next three years. The government plans to submit amendments to the tax system during the regular session of Congress in 2027 and intends to release detailed tax guidelines in the first half of 2028.
This tax was initially scheduled to take effect in January 2022, but it was subsequently postponed to 2023, 2025, and then 2027.
This proposal overturns the government's previous stance. A South Korean Finance Ministry official stated in May of this year that the relevant measures would be implemented in 2027.
As calls for postponing this tax continue to rise, South Korean financial officials have recently also made contact with major cryptocurrency exchanges. Industry representatives pointed out that the tax regulations for different types of transactions are still not clear, and there is not enough time to prepare the necessary infrastructure.











