South Korea Considers Fourth Delay to Crypto Gains Tax, Eyes 2029 Start

South Korea looks set to push back its tax on crypto profits yet again, with a possible new start date in 2029. Local outlet Newsis says the presidential office is talking with government agencies about the change, even though the levy is currently due to begin on Jan. 1, 2027. The plan dates back to 2020, when an Income Tax Act amendment set a 22% rate, local tax included, on yearly gains from selling or lending digital assets above a basic deduction of 2.5 million won, about $1,888. It was first meant to start in 2022 and has been postponed three times already, as traders and experts raised worries over tax systems and investor protection.

Why the CARF Timeline Matters

A key factor is the OECD’s Crypto Asset Reporting Framework, the global standard that lets tax authorities automatically share crypto transaction data. South Korea is among dozens of countries expected to start exchanging this data in 2027, while the US is not scheduled to join until 2029. An official in the presidential office reportedly said missing US trading data is the biggest obstacle, since authorities would have to trace overseas transactions one by one, and users of local platforms would face a heavier burden.

Next Steps for the Korean Crypto Tax Decision

Ruling Democratic Party lawmaker Park Min gyu has already proposed a bill that targets Jan. 1, 2029 as the start date. The government is expected to settle its position through inter-agency talks, and the final call will likely come through National Assembly tax law revisions, with discussions expected between late November and early December.