South Korea’s Crypto Tax Remains Set for 2027 as Delay Bill Waits

South Korea’s crypto income tax remains scheduled to begin in 2027 while lawmakers consider a separate delay bill and the government finishes consultations on a broader digital-asset measure.

At an Oct. 22 parliamentary audit in Seoul, Financial Services Commission (FSC) Chairman Lee Eog-weon said consultations on the government’s bill were in their final stage. He said officials intended to move quickly to advance the measure to legislative discussion.

People Power Party lawmaker Song Eon-seok said the government’s draft had not been released. He questioned whether the tax could begin before digital assets’ legal status and policy treatment were settled.

Under current rules, qualifying income for South Korean residents from transferring or lending virtual assets is scheduled to be taxed separately as “other income” starting Jan. 1, 2027. The framework allows a 2.5 million won annual deduction after allowable costs, and the national income-tax rate is 20%. The deduction applies to qualifying income, rather than the full value of a transfer or loan.

A separate bill filed by lawmaker Kim Sang-hoon and 11 others would move the start date to Jan. 1, 2029. It was referred to the relevant committee on Aug. 31 and remains pending. The proposal would delay implementation by two years; it is separate from the government’s broader digital-asset bill.

South Korea’s tax framework was adopted in 2020, with implementation initially planned for 2022. The start date was later pushed back to 2023, 2025 and then 2027.

No change to the timetable was announced after an Oct. 20 government meeting with five exchanges. Participants sought clearer rules and more time to prepare.

The Jan. 1, 2027, start date remains in effect while the separate delay proposal awaits committee action.