South Korea’s Crypto Tax Keeps Getting Pushed Back—Now Eyes 2027

Key Takeaways

• South Korean lawmakers have agreed to delay the implementation of its crypto tax until 2027.
• Lawmakers are set to vote on the proposed delay on Monday, Dec. 2.
• The government cited the need for more preparation before taxing crypto gains.

South Korea’s government has once again postponed its long-awaited crypto tax, marking the third delay since the initiative was first proposed.

After a series of back-and-forth discussions, lawmakers have agreed to push the tax implementation to 2027.

South Korea Delays Crypto Tax Yet Again

The announcement  came on Sunday, Dec. 1, when the Democratic Party (DP), the largest faction in the National Assembly, confirmed the delay.

The DP’s decision followed a tense exchange with the People Power Party (PPP), which had initially sought to further delay the tax.

Park Chan-dae, the DP’s floor leader, explained that the delay was necessary to ensure “more institutional preparation” before the government begins taxing virtual assets.

“We need more time for proper framework development,” he said, underscoring the complexity of regulating crypto trading.

This latest setback means the government has again put off the introduction of the crypto tax, initially scheduled for 2022.

The latest version, which was set to go into effect in January 2025, now faces another two-year delay.

A History of Delays

The series of delays began in 2021  when South Korea’s lawmakers first voted to impose a tax on crypto gains.

At that time, the legislation was supposed to go into effect on Jan. 1, 2022.

However, the government postponed it, citing the need for further preparation and adjustments to tax enforcement.

Lawmakers revisited the issue several times then, with the most recent plans to begin taxing crypto trading in January 2025.

However, as that deadline neared, it became clear that further delays were on the table.

A Shot in the Dark

Last week, DP lawmakers attempted to push through a competing proposal, aiming to stick with the original schedule.

Jeong Tae-ho, a member of the DP, proposed raising the tax threshold from 2.5 million won ($1,791) to 50 million won ($35,826).

This amendment would have effectively exempted many small retail investors from the tax, placing the burden on wealthier traders and professional investors, much like the tax treatment of stocks and shares.

Despite support for the amendment, it has not been adopted.

Critics  of the delay argue that the lower threshold could hurt smaller crypto traders, many of whom are already grappling with the market’s volatility.