South Korea Crypto Tax Rule: New Delay Bill Targets 2030 Launch
Bhumika Baghel
South Korea Crypto Regulations: Why Tax Bill Delayed Fourth Time
South Korea crypto policy is back in the spotlight. Lawmaker Jeong Seong-guk of the People Power Party has filed a bill in the National Assembly to push the country's virtual asset tax back by three years. It targets to move the regulations from January 1, 2027, to January 1, 2030.
According Wu Blockchain, citing a report from MBN, this is the first formal bill of its kind on the postponement, and it marks a major shift in how the crypto tax debate is heading into 2026.
South Korea Crypto News: Lawmaker Seeks Fourth Tax Delay
The virtual asset income tax has been on the books since 2020. Under existing law, gains from transferring or lending digital assets count as other income. Anything over 2.5 million KRW, roughly $1,800, in a year gets taxed.
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Rate: 22% total (20% national income tax, 2% local income tax)
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Threshold: annual gains above 2.5 million KRW
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Loss carryforwards: not allowed under the current draft
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Original target: 2022, already pushed back three times to 2023, 2025, and 2027
This new bill would mark a fourth postponement in the implementation date. That pattern says a lot about how hard it has been to lock in a final start date.
Jeong Seong-guk argues the system is not ready. Reporting behind the proposal points to
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gaps in tracking on-chain activity,
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weak infrastructure for offshore transactions, and
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fairness concerns after lawmakers scrapped the separate financial investment income tax.
Applying a 22% rate without matching investor protections, backers say, would treat digital assets unfairly compared with other asset classes.
South Korea Crypto Regulation In 2026: Crypto Adoption and Growth
South Korea has one of the highest rates of cryptocurrency ownership anywhere. As per Triple-A report, around 3.9% of the total South Koreans own cryptocurrency.
Estimates put registered users across major exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax between 11 and 16 million people.
That is a large share of the adult population, and it explains why this bill carries real political weight. Figures tied to the proposal put the number of affected traders near 13 million.
Existing oversight already includes VASP registration rules, real-name banking, and user protections under the Act on the Protection of Virtual Asset Users.
Work is also underway on the Digital Asset Basic Act, expected to shape stablecoin rules, tokenization, and possible spot crypto ETFs.
The finance ministry has said it still wants the 2027 start date to be held, so this remains a live and contested issue heading into 2026.
How Seoul's Tax Plan Compares To Neighbours
Korea's repeated postponements stand out globally. Japan taxed crypto gains as high as 55% for years and is now moving toward a flatter 20% rate to stay competitive.
India still applies a strict 30% flat charge with no loss offsets, which pushes trading activity offshore. Singapore and Hong Kong mostly skip capital gains charges on cryptocurrency for individuals, which has helped both stay attractive as hubs.
Global reporting standards are also catching up. The OECD's CARF cryptocurrency reporting framework that Korea will eventually need to follow makes offshore loopholes harder to use. It also weakens the case for waiting indefinitely.
In The End
Whether this bill passes or not, it points to a bigger pattern. Digital asset adoption in the country keeps growing while the rulebook stays unsettled. Each extension buys time without solving the underlying infrastructure gap.
Debate over how gains should be taxed heading into 2027 will likely intensify as the National Assembly reviews this bill. The outcome will shape how millions of investors plan their trades in the years ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets carry significant risk. Always do your own research before making any investment decisions.
