South Korea Lawmakers Propose Extending Crypto Tax Delay to 2029

Members of the National Assembly’s Finance, Economy and Planning Committee reached the recommendation on November 3 following closed-door sessions. Lawmaker Oh Ki-hyung confirmed that while the party maintains the principle that crypto income should be taxable, the current infrastructure remains insufficient for fair enforcement. The primary hurdle involves the Crypto-Asset Reporting Framework, an international system designed to track overseas transactions. Because South Korea intends to participate in this data exchange by 2027 while other major jurisdictions like the U.S. may not join until 2029, officials fear a lack of comprehensive records will hinder tax assessment.

Beyond data gaps, the government is still finalizing the Digital Asset Basic Act, which will dictate future business classifications for crypto firms. Exchanges such as Bithumb have warned that building the necessary reporting architecture requires significant lead time once regulatory requirements are finalized. If the current law stands, a 22% tax on annual gains exceeding 2.5 million won is set to take effect on January 1, 2027. Democratic Party leadership is expected to finalize its stance on the extension within two weeks, a move that would ultimately require formal parliamentary approval to amend the existing Income Tax Act.