South Korea lawmakers mull pushing crypto tax implementation to 2029

What happened

South Korean officials are reportedly discussing postponing the cryptocurrency income tax, currently set to begin January 2027, possibly to 2029. The proposed 22% tax would apply to crypto gains above 2.5 million Korean won ($1,883) annually and has already been delayed several times since 2020.

Proposed

Global impact / market context

A delay would give crypto investors in South Korea more time before paying tax on gains, potentially supporting trading activity. It would also postpone government tax revenue and keep the rules uncertain, which makes long-term planning harder for investors and exchanges.

Analyst inference

South Korea is a major crypto trading market, so shifting its tax start date could influence regional investor behavior. Officials link the timing to US participation in the OECD’s Crypto-Asset Reporting Framework in 2029, which means cross-border tax data sharing is not yet ready.

Analyst inference

What to watch

1. South Korea’s National Tax Service still lists January 1, 2027 as the crypto tax start date, so watch whether that official date changes after the government’s discussions. Confirmed
2. Officials are reportedly considering 2029, the earliest year the US could share digital asset exchange tax information, so watch for a formal proposal and approval steps. Proposed
3. Watch whether US participation in the OECD’s Crypto-Asset Reporting Framework, which means shared tax data between countries, stays on schedule for 2029, since Seoul cites it as a reason to delay. Analyst inference

Evidence

• cointelegraph.com