South Korea May Delay Crypto Gains Tax to 2029

South Korean officials are debating a further delay to the crypto income tax that is slated to begin on January 1, 2027. The presidential office has signalled support for moving the start date to 2029, but the National Assembly has not passed the amendment, leaving the effective date uncertain for traders.

Current Tax Framework

The law taxes qualifying crypto transfers and lending from the start date. Annual gains above 2.5 million won are subject to a 20 % national income tax plus a 2 % local tax, effectively a 22 % rate. For assets held before the start, the acquisition value is the higher of the actual purchase cost and a prescribed market value on the day before the tax begins.

Potential Impact of a Delay

A shift to 2029 would replace the 2027 reference price used in the opening‑valuation calculation, potentially altering the taxable base for long‑term holders. The National Tax Service (NTS) plans to issue detailed guidance in November on activities such as staking, airdrops, forks and DeFi lending.

Legislative Landscape

The tax provision, first enacted in 2020 for a 2022 launch, has been postponed repeatedly—to 2023, 2025 and now 2027. A petition for a two‑year delay gathered over 50,000 signatures, prompting parliamentary review, but it does not itself amend the Income Tax Act. Any change requires a formal amendment and promulgation.

Key Facts

• Tax start currently set for Jan 1 2027.
• Presidential office favors a 2029 start.
• Gains > 2.5 M won taxed at 22 % total.
• NTS to release staking/DeFi guidance in November.
• Petition for delay reached 50,000 signatures.

Traders should continue preparing records under the existing 2027 schedule while monitoring legislative developments.