Korea's crypto tax faces 4th delay as gov't turns cautious amid low approval ratings

By Jun Ji-hye

• Published Oct 21, 2026 4:12 PM KST

Korea’s tax on cryptocurrency gains, scheduled to take effect in January, could face a fourth postponement as the government turns cautious amid mounting calls for a delay from investors, the industry and lawmakers from both ruling and opposition parties.

Authorities have defended the levy on the principle that income should be taxed and on grounds of fairness across asset classes. However, the government’s recent pledge to reassess tax infrastructure and market conditions has fueled expectations of another postponement.

The subtle shift comes as falling stock prices and tighter property taxation have already frustrated investors, raising concerns that crypto taxation could provoke further backlash. Low approval ratings for President Lee Jae Myung and the ruling party are adding to the political pressure.

The issue is particularly sensitive among young investors. Under the current timetable, the first filing and payment deadline would fall in May 2028, immediately after parliamentary elections that April.

On Wednesday, Rep. Park Soo-young of the main opposition People Power Party joined six young crypto investors at a National Assembly press conference to demand a two-year postponement. They said clearer rules and functioning tax reporting systems must come first.

“Parliamentary audits have confirmed that the scope of taxation and revenue estimates remain unclear, while detailed tax rules have yet to be finalized,” Park said. “Even the five major exchanges have not completed their tax systems.”

He warned that proceeding next year would shift the burden onto the public and undermine young people’s opportunities to build wealth.

The planned regime would classify income from transferring or lending digital assets as other income. Annual profits would be taxed at 22 percent, including local income tax, on the portion exceeding a 2.5 million won ($1,900) allowance. Profits would be calculated by deducting acquisition costs and related expenses from proceeds.

The government announced the tax in July 2020, and the National Assembly passed the necessary legislation that December for implementation in 2022. The start date was subsequently postponed to 2023, 2025 and 2027.

Preparations have continued this year. The Ministry of Finance and Economy reaffirmed the January timetable at a parliamentary forum in May, while the National Tax Service has been preparing related guidance for release around November.

But Tuesday’s meeting between First Vice Finance Minister Kwon Dae-young, representatives of major exchanges and experts suggested greater flexibility.

Industry representatives called for clearer rules covering increasingly complex transactions, more time to build and test reporting systems and fair tax enforcement for users of domestic and overseas exchanges.

Kwon said “taxation must be carefully structured and implemented” to reflect market developments and transaction characteristics while preserving tax principles. He pledged to review cross-border information exchange, rules for different transaction types and filing procedures.

The remarks have raised hopes that the government may reconsider the implementation timetable.

Support for a delay also extends to the ruling Democratic Party of Korea. On Friday, Rep. Park Min-kyu proposed a bill to begin taxation two years after the first year of international exchanges of crypto transaction data. With information sharing expected to begin next year, implementation would effectively move to 2029.

Within the ruling bloc, one possible approach is for lawmakers to lead the legislative changes and the government to accept them, easing the political burden on the administration of initiating another postponement.

“We are still collecting industry views and will determine our plans in consultation with other ministries,” a finance ministry official said.