South Korea’s Democratic Party Leader Proposes Crypto Tax Delay

South Korea’s Democratic Party leader 金民锡 has formally proposed delaying taxes on cryptocurrency income, saying the country should first enact the Digital Asset Basic Act and give businesses and investors time to adjust.

The tax was originally scheduled to take effect Jan. 1, 2027. Under the proposal, South Korea would establish the Act as a legal framework before taxing cryptocurrency gains.

The tax has already been postponed three times. Party lawmakers on the National Assembly’s Finance and Economy Committee have recommended a delay of about two years, with a majority favoring more preparation. Earlier party plans included talks with five domestic exchanges about moving the tax start to 2029.

The planned system covers income tied to transfers and rentals of virtual assets, with combined income and local taxes totaling 22%.

Riza Dagoc

Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to [email protected].