A lawmaker from South Korea’s People Power Party has proposed delaying the country’s cryptocurrency income tax by three years, pushing its planned implementation from January 2027 to January 2030.
According to a local report, Representative Jeong Seong-guk plans to introduce an amendment to the Income Tax Act that would defer the tax while lawmakers and authorities review the broader virtual asset taxation framework. The legislative push comes shortly after the South Korean government reaffirmed its intention to keep the existing January 1, 2027 start date as part of its 2026 tax reform revisions.
Crypto tax threshold set at 2.5M won
Under the current framework, income earned from transferring or lending virtual assets such as Bitcoin and Ether would be classified as “other income.” Annual crypto gains above 2.5 million won ($1,800) would face a combined tax rate of 22% — a 20% national income tax and a 2% local income tax.
For example, an investor earning 5 million won in taxable crypto gains would first deduct the 2.5 million won allowance, leaving 2.5 million won subject to the 22% rate. The first tax returns for income earned in 2027 would be filed in May 2028.
2027 tax deadline stays
The proposal follows the government’s decision earlier this month to retain the 2027 start date in its 2026 tax reform proposal. Finance Minister Koo Yun-cheol said at a National Assembly committee meeting on July 29 that the government intends to implement the tax as scheduled and consider improvements after gaining experience with the system.
South Korea has already postponed crypto taxation several times. The rules were originally scheduled to take effect in 2022 before being pushed back to 2023, 2025 and then 2027.
Jeong argues that another delay would give authorities more time to strengthen investor protections, taxation infrastructure and related virtual asset regulations before the levy takes effect.
Parallel abolition bill
The latest proposal is separate from another People Power Party bill that would remove the virtual asset income-tax provision altogether. The party has argued that taxing crypto gains while general investors’ stock gains remain effectively exempt creates an uneven tax treatment between different investment markets.
The abolition bill is currently being considered by the National Assembly’s Finance and Planning Committee, although removing the tax entirely could face resistance from the government and other lawmakers.
Crypto reporting expands
South Korean authorities have been preparing systems to improve oversight of crypto transactions, including activity conducted through overseas platforms. Under the OECD’s Crypto-Asset Reporting Framework, South Korea expects to begin receiving information on overseas crypto transactions from participating jurisdictions next year. The government has said 48 jurisdictions, including Japan, Germany and France, are participating in the reporting arrangement.
The National Tax Service has also established a dedicated digital asset unit as preparations for the taxation regime continue.
Jeong’s amendment will now enter the legislative process, where lawmakers will have to decide whether to accept another three-year delay, maintain the 2027 deadline or pursue broader changes to the tax regime.
The proposal adds another layer to South Korea’s wider debate over how cryptocurrency should be regulated, taxed and integrated into the country’s financial system.
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