South Korea weighs fourth delay of crypto gains tax, eyes 2029 start: report

The proposed delay reportedly aims to align with the U.S. 2029 schedule of integrating CARF, the OECD's international tax framework for digital assets.

By Danny Park • Edited by James Hunt
Regulation•October 26, 2026, 6:06AM EDT
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South Korea weighs fourth delay of crypto gains tax, eyes 2029 start: report

Quick Take

  • South Korea’s presidential office told local media that it is discussing delaying the tax, which is currently scheduled to take effect in January 2027.
  • The proposed delay is reportedly aimed at aligning with the U.S. timeline under the OECD’s Crypto-Asset Reporting Framework (CARF).

South Korea is likely to postpone its planned tax on cryptocurrency gains for the fourth time, with implementation potentially pushed to 2029, according to local news outlet Newsis.

The presidential office is reportedly discussing a further delay of the levy with relevant government agencies. The tax plan is currently scheduled to take effect on Jan. 1, 2027. 

South Korea first introduced the crypto tax plan in 2020 through an amendment to the Income Tax Act. It sought to apply a 22% rate, including local tax, to annual gains from the transfer or lending of crypto assets after a basic deduction of 2.5 million won ($1,888). 

The measure was originally set for 2022 but has already been delayed three times as local traders and experts expressed concern over tax infrastructure and investor protection. A further postponement would mark the fourth delay.

CARF timeline

The Newsis report cited the timeline of the OECD’s Crypto-Asset Reporting Framework (CARF) as a key factor in the delay. CARF is the international standard for bringing crypto under global tax rules, enabling automatic exchange of transaction data between tax authorities.

South Korea is among dozens of jurisdictions set to begin exchanging crypto transaction data under CARF in 2027. However, the U.S. is scheduled to start participating in 2029. 

An official of the presidential office has reportedly said that the unavailability of U.S. trading data is the biggest bottleneck for crypto taxation, as authorities would need to track overseas transactions individually. It would also increase the burden on users of domestic platforms. A bill introduced by ruling Democratic Party lawmaker Park Min-gyu also proposes targeting the tax start date to January 1, 2029. 

The government is expected to finalize its position through inter-agency consultations. A final decision is likely to come through National Assembly tax law revisions, with discussions expected between late November and early December, the report said.