South Korea’s 22% tax on crypto gains, scheduled to take effect in 2027, may be delayed for a fourth time because of a timing gap in obtaining transaction data from the U.S.
According to The Block, citing local news agency Newsis, the presidential office is discussing with relevant agencies the option of pushing the tax’s start date to 2029. Under the current schedule, the tax is set to take effect on January 1, 2027; a new delay has not yet been finalized.
The crypto tax plan was first approved in 2020 through an amendment to the income tax law. Originally prepared for 2022, the measure has been postponed three times due to concerns about tax infrastructure and investor protection. If the proposed change is approved, that number will rise to four.
Why is the U.S. data-sharing timeline decisive?
At the center of the debate is the OECD’s Crypto-Asset Reporting Framework (CARF). The system aims to enable the automatic sharing of crypto transaction information among countries’ tax authorities.
According to the timeline cited in the report, South Korea is expected to begin sharing data in 2027, while the U.S. is expected to start in 2029. This two-year gap is seen as a factor that could make it harder for South Korea to track overseas transactions.
A presidential office official who spoke to Newsis described the inability to obtain transaction data from the U.S. as the biggest bottleneck to taxation. According to the official, overseas transactions would then have to be tracked individually, potentially increasing the burden on investors who use domestic platforms.
Which gains would the tax plan cover?
The measure would apply to annual gains from the transfer or lending of crypto assets after a basic deduction of 2.5 million won. The tax rate on gains above that amount, which the report says is equivalent to approximately $1,900, would be 22%, including local tax.
A proposal submitted by ruling Democratic Party lawmaker Park Min-gyu also recommends setting the start date at January 1, 2029. The government’s position is expected to become clearer through interagency discussions, while the final decision will be made through tax law amendments in parliament. According to the report, the discussions are expected to come up in late November or early December.
Not investment advice.