South Korea Weighs 2029 Crypto Tax Delay

South Korea is weighing a fourth delay to its cryptocurrency capital gains tax, shifting the proposed start date from 1 January 2027 to 1 January 2029. The presidential office reportedly favors postponement, but a final decision is expected in early December and any change requires parliamentary approval. Lawmakers are expected to debate amendments to the Income Tax Act from November. The tax was originally due to begin in 2022 and has already been postponed three times. A petition seeking a two-year delay drew 50,000 signatures, adding to pressure from lawmakers across party lines. The proposed crypto tax would apply to annual net gains from crypto transfers and lending. The rate is 20%, or 22% including local income tax, with a 2.5 million won deduction after acquisition costs. Officials cite gaps in cross-border tax reporting as a key concern: South Korea, Japan and the UK are scheduled to exchange data under the OECD’s Crypto-Asset Reporting Framework (CARF) from 2027, Singapore, Switzerland and Hong Kong from 2028, and the US from 2029. Without US data, authorities may find it harder to track overseas exchange activity, potentially leaving domestic-exchange users facing a greater reporting burden. A fourth crypto tax delay could give South Korean investors and exchanges more time before the levy takes effect, but the proposal remains uncertain until lawmakers decide. The extended timeline may ease near-term compliance pressure while prolonging uncertainty over crypto taxation and cross-border reporting.