South Korea Seeks Fourth Crypto Tax Delay, Now to 2029

South Korea's government said Thursday it will work with the National Assembly to push cryptocurrency income taxation back two more years, to 2029, The Korea Herald reported.

The tax is scheduled to start in January 2027 under current law. Finance and Economy Minister Lee Hyeong-il said at a Seoul briefing that a further delay would be the fourth since the levy was legislated in 2020 for a 2022 start. "It weighs heavily on me to propose another delay after the tax has already been postponed three times," Lee said, per the Herald.

Losses could offset later gains

Under the existing design, individuals would pay 22%, including local income tax, on annual net income above 2.5 million won from selling or lending virtual assets. Only same-year losses offset gains. The government will also seek a three-year loss carryforward so losses realized in 2029 offset gains through 2032, The Asia Business Daily reported. Losses booked before the tax takes effect would not qualify.

A capital-gains-style crypto tax charges a share of profits when someone sells or lends tokens. A loss carryforward lets a losing year reduce tax in later profitable years. Japan plans a three-year crypto loss carryforward from 2028, Asiae notes.

Lee cited gaps in overseas trading data and the need to align with a proposed Digital Asset Act. U.S. crypto transaction data under the OECD Crypto-Asset Reporting Framework is due to begin flowing in 2029, he said. The Assembly must amend the Income Tax Act before January for the delay to take effect; the ministry wants both the postponement and the carryforward considered in this year's regular session.

The ruling Democratic Party asked for another delay on Nov. 4. Thursday's briefing is the finance ministry's own plan, with the 2029 target and the loss rule attached.

In our opinion: the legal start is still January 2027 until the Income Tax Act moves. The Assembly's Tax Subcommittee takes up the revision this month. Passage in the regular session would push the 22% levy to 2029 and add three years of loss carryforward from day one.