South Korea's Ruling Party Asks to Delay Crypto Tax Two More Years

South Korea's ruling Democratic Party has formally asked the government to postpone the cryptocurrency income tax now slated to start Jan. 1, 2027. Party leader Kim Min-seok delivered the request at a leadership meeting in Seoul, according to News1. His pitch: write the rules of the market before you start collecting on it.

The leading option inside the party is a two-year delay, Seoul Shinmun reported, which would move the start date to 2029. Kim's own remarks stopped short of naming a replacement date. What he wants first is the Digital Asset Basic Act, a framework that would give companies and investors room to adapt.

Nothing changes for taxpayers yet. The National Tax Service's current guidance still taxes crypto sales and lending from Jan. 1, 2027, and only an amendment to the Income Tax Act can shift that. Kim said the party arrived at its position after talks with the government and crypto businesses, weighing tax principles, domestic industry conditions and fairness among users, per MoneyToday. He also pledged to nail down the delay period clearly and prep overseas transaction data, system testing and taxpayer guidance.

The formal ask hardens a debate Kim was still framing as open at an Oct. 28 party-government meeting. In those published remarks, he pointed out the Digital Asset Basic Act hadn't been enacted and questioned whether shaky tax infrastructure and unequal treatment of domestic versus overseas exchange users justified holding off.

An alternative route comes from lawmaker Park Min-gyu, whose Oct. 16 bill ties taxation to international information sharing instead of simply stamping 2029 into law. Its text sets the start at Jan. 1 of the second year after crypto transaction information is first exchanged under the relevant international-tax provisions. Sponsors argue thin overseas records would concentrate enforcement on domestic exchange users, and the proposal would also move the valuation date used to calculate acquisition costs for existing holdings and shift related exchange reporting provisions alongside the tax start date.

Under the current framework, resident investors get an annual deduction of 2.5 million won, with a 20% national income-tax rate on the rest of their net crypto income. Gains and losses are combined across the year, with income reported the following May. The last enacted delay came through a December 2024 amendment that pushed implementation back two years — so until another amendment passes, the first taxable year stays 2027, with returns due May 2028.