As calls grow for another review of South Korea’s crypto tax, delayed three times, the government says it is nearing the completion of a comprehensive bill to regulate the sector.
According to The Block, citing local media, the timeline for the crypto tax, scheduled to take effect on January 1, 2027, is being debated again. Kim Min-seok, leader of the ruling Democratic Party, said they were considering differing views amid growing calls for another delay and that a comprehensive final review was needed.
The remarks, reported by Yonhap, suggest that officials who previously said they would stick to the 2027 timeline are open to reconsidering the issue. Nevertheless, the current implementation date has not yet changed.
Sector rules first, or taxes?
The debate is not centered solely on the tax itself. Lawmakers are also questioning whether taxation should begin before the legal framework establishing the crypto sector’s basic rules is in place.
Financial Services Commission Chairman Lee Eog-weon said during Thursday’s parliamentary session that government discussions on the Digital Asset Basic Act were nearing completion. According to a report by Bloomingbit, the government aims to submit the bill as soon as possible.
The bill covers the licensing of crypto exchanges, rules on stablecoin issuance, and legal definitions of digital assets. Lee said that different circumstances should be comprehensively taken into account regarding the tax.
Preparations continue despite calls for a delay
The crypto tax has previously been delayed three times amid debate over fairness and the adequacy of the implementation infrastructure. A petition calling for the tax to be abolished reached the 50,000 signatures required to trigger a parliamentary review in May. A separate petition launched in August calling for a two-year delay also crossed the same threshold in mid-September.
While the political debate continues, the National Tax Service is proceeding according to the current timeline. According to Digital Asset, the agency plans to complete a draft notice on digital asset taxation by October 30, then move to preliminary review and public announcement stages in November.
Thus, while new calls for a delay are being considered, administrative preparations for a 2027 start are moving forward. It remains unclear whether the new review will change the timeline.
Not investment advice.