South Korea moves toward another crypto-tax delay, with a legal change still needed

South Korea’s presidential office is moving toward another postponement of a cryptocurrency income tax scheduled to begin January 1, 2027, according to local reporting on October 25. A proposal to shift the start to 2029 is gaining political support, but the reported executive position is not itself an enacted change to the Income Tax Act. The immediate news is a stronger push for delay, rather than a completed repeal of the levy.

Seoul Economic Daily cited an unnamed presidential-office official who said discussions were moving toward postponement. Electronic Times separately reported that the administration was considering a two-year delay. The reports point to incomplete preparations for tax collection, concerns among younger investors and the challenge of collecting information across overseas trading venues. They describe a policy direction that still needs to pass through the legislative process.

The scheduled levy and the proposed delay are separate

As described in the reporting, the planned regime applies a combined 22% national and local tax rate to annual income from transfers or lending of virtual assets after a 2.5 million won basic deduction. It is therefore not described as a 22% charge on the entire value of every transaction. The distinction between proceeds and taxable income matters when interpreting the financial effect of the proposal.

The levy has already been postponed three times since the 2020 legislative revision that established the framework. A further delay would extend that implementation history rather than create a new general exemption for all cryptocurrency activity. Our guide to reading proposed crypto legislation explains why the status of a measure matters as much as its headline: support, introduction, passage and an effective date are different stages.

Seoul Economic Daily reported that a ruling-party bill would move the start to 2029 and that the opposition also favors postponement. It expects further government-party discussions after the parliamentary audit period, followed by consideration during November’s tax-law review. Those expectations make the calendar important, but they do not guarantee the wording or passage of a final amendment. A proposal can change during negotiations.

Cross-border reporting is part of the argument

The overseas-exchange concern has a concrete international reference point. The OECD Global Forum’s September 14, 2026 commitment list places South Korea among jurisdictions undertaking their first exchanges under the Crypto-Asset Reporting Framework by 2027. It places the United States in the group undertaking first exchanges by 2029. These are commitments concerning information exchange, not a universal timetable for starting or ending cryptocurrency taxes.

Local reports link that gap to concerns about unequal collection between users of domestic and overseas services. The policy argument is that a tax system needs sufficiently consistent access to relevant transaction information. That does not establish that every overseas trade would be invisible, or that an offshore account removes a person’s obligations. Information coverage and the legal obligation to pay are related enforcement questions, but they are not the same rule.

The distinction also limits what a delay can accomplish. Extra preparation time could help authorities and trading platforms organize records and reporting processes. It would not, by itself, settle every issue surrounding taxable income, record quality or consistent treatment across venues. Those questions depend on the eventual legislation and implementing arrangements. Postponement would change a deadline; its administrative benefits would need to be demonstrated.

A Korean proposal does not change another country’s tax rules

For US readers holding Bitcoin, the report should not be read as a change to American tax obligations. The IRS continues to explain that digital-asset activity can generate reportable income, gains or losses under US rules. Our US crypto-tax explainer sets out the importance of identifying the transaction and relevant jurisdiction before drawing conclusions from an international policy headline.

The next decisive development would be a published amendment with an approved commencement date, followed by the guidance needed to implement it. Until then, the verified reporting supports a narrower conclusion: South Korea’s administration is leaning toward another delay and lawmakers are considering 2029. It does not establish that the tax has been abolished, that the new date is already law or that the announcement caused a particular move in crypto prices.