South Korea Seeks to Delay Crypto Gains Tax to 2029 in Fourth Postponement

South Korea will seek to delay its planned tax on cryptocurrency gains by two years, from January 1, 2027 to 2029, Finance Minister Lee Hyoung-il said at a press conference in Seoul on Thursday, November 5, 2026. If the National Assembly approves the change, it will be the fourth postponement of the tax.

"It is with a heavy heart that I announce another proposed delay in taxation, after its implementation has already been postponed three times," Lee said, according to Yonhap News Agency as reported by the Korea JoongAng Daily. "The government will use the two-year period to ensure that taxation of virtual assets can be implemented smoothly in 2029," he added.

Why Seoul wants more time

The government said South Korea is set to begin exchanging information on virtual assets with the United States in 2029. Taxing gains before then could put the domestic cryptocurrency market at a disadvantage compared with overseas platforms, because trades made abroad are harder for Korean authorities to track.

"The proposed delay aims to uphold the basic principle that income should be taxed while improving the effectiveness of taxation on domestic and overseas transactions, ensuring greater fairness among taxpayers, and establishing a reliable and stable framework for taxation," the Ministry of Finance and Economy said.

Under the scheme, a 22 percent tax, including local income tax, would apply to annual cryptocurrency gains above 2.5 million won (US$1,869). That rate and threshold do not change under the proposal.

What happens next

Seoul first moved to tax gains on virtual assets in 2020, with implementation set for January 2022. The start was then pushed to 2023, then to 2025, and then to January 1, 2027. The new plan needs the National Assembly to amend the tax law, and the finance ministry said it plans to submit legislative amendments during the regular parliamentary session in 2027.

The government plans to form a public-private working group to refine the tax system, develop detailed rules for different kinds of transactions and make filing easier. The working group will hold its first meeting soon and continue discussions through the first half of next year, the ministry said. Seoul also aims to prepare proposed reforms in the first half of 2027 and announce detailed taxation guidelines in the first half of 2028, Aju Press reported.

Given the swings in cryptocurrency prices, the government will also seek to let investors carry forward losses for up to three years to offset future gains, following similar practice in the United States and Britain. It will also work with the Financial Services Commission to speed up a digital asset law meant to support sound market growth and protect users.

Ruling Democratic Party lawmakers had recommended a delay earlier in the week. Until lawmakers pass the change, the January 1, 2027 start date remains the law.