South Korean Officials Lean Toward Delaying Crypto Tax Until 2029: Report

South Korea's government is leaning toward postponing its crypto income tax once more, with a January 2029 start now the most likely option, Korean news agency Newsis reported on Oct. 26, citing unnamed officials at the presidential office and elsewhere in government.

An official at the presidential office, Cheong Wa Dae, reportedly told Newsis on Oct. 25 that discussions were headed toward pushing implementation back. The government plans to settle its position through inter-agency consultations starting as early as Oct. 26, the report said.

The tax is scheduled to take effect on Jan. 1, 2027. It would apply a 22% rate, including local tax, to income from disposing of or lending crypto above 2.5 million won, after necessary expenses are deducted.

Waiting on the U.S.

Cross-border data is the main reason. Under the OECD's Crypto-Asset Reporting Framework (CARF), which lets countries automatically share crypto tax information, South Korea is among 46 countries starting exchanges next year, Newsis said. Another 29, including Canada, Switzerland, Singapore and Hong Kong, join in 2028, and the U.S. makes its first exchange only in 2029.

The presidential office official reportedly said the U.S. accounts for nearly half the crypto market and called its not providing Korea with tax information the main obstacle. A 2027 start, the official added, would leave Korean tax authorities tracing data on U.S. exchanges one by one, and the presidential office said the tax could end up falling on domestic exchange users alone, according to Newsis.