South Korea wants to delay its 22% crypto tax again and give investors a new break on losses

South Korea’s government said on Nov. 5 it would pursue a two-year postponement of crypto income taxation to 2029, alongside a proposed three-year loss carryforward, in consultation with the National Assembly.

The announcement follows the Democratic Party’s Nov. 4 request for another delay, less than two months before the scheduled January 2027 start.

The government’s plan still requires legislation. National Tax Service guidance continues to specify taxation of eligible crypto transfers and lending from Jan. 1, 2027.

Party leader Kim Min-seok said the party wanted the Digital Asset Basic Act to establish an overall framework before giving companies and investors an adjustment period, Yonhap reported. He also identified overseas transaction information, computer-system verification and taxpayer guidance as preparations that should accompany another postponement.

The government cited expected crypto transaction-information exchange with the United States from 2029 and changes anticipated under digital-asset legislation as reasons for seeking two more years of preparation. It also proposed allowing losses to be carried forward for three years, so they could offset later gains when calculating taxable income.

Kim’s Nov. 4 remarks reported by Yonhap specified no replacement date, although the agency said committee members had mainly discussed two years. The government’s subsequent announcement now identifies 2029 as its target.

A 2029 start already appears in a legislative proposal. An Aug. 28 release from Rep. Kim Sang-hoon describes his Income Tax Act amendment to move commencement from Jan. 1, 2027 to Jan. 1, 2029. That proposed date remains conditional on an enacted change to the timetable.

The proposed 2029 start requires legislation; January 2027 remains the scheduled start.

Status as of Nov 5, 2026. The proposed 2029 date is not enacted; the graphic does not forecast passage.

Sources and evidence

Sources

1. Yonhap: November 4 request
2. National Tax Service: scheduled framework
3. Kim Sang-hoon: August 28 bill proposal
4. Korea Policy Briefing: November 5 government proposal

Supporting facts

• Reported statement Democratic Party of Korea leader Kim Min-seok formally asked the government on November 4, 2026 to postpone taxation of crypto income, according to Yonhap’s reporting from the leadership meeting. [1]
• National Tax Service guidance accessed November 5 still specifies separately taxed miscellaneous income from eligible crypto transfers and lending beginning January 1, 2027, following a December 2024 Income Tax Act amendment. [2]
• The November 4 request does not itself enact a postponement; Yonhap reported that further high-level government-party discussions were expected before a final decision, while NTS guidance retained January 2027. [1] [2]
• Reported statement Kim promised a clearly defined deferral period but did not specify a replacement commencement date in the remarks reported by Yonhap; the agency said committee members had mainly discussed two years. [1]
• An August 28, 2026 release from Rep. Kim Sang-hoon describes his proposed Income Tax Act amendment to shift crypto income taxation from January 1, 2027 to January 1, 2029. [3]
• Reported statement On November 5, 2026, South Korea’s government said it would pursue a two-year delay of crypto income taxation, targeting 2029, in consultation with the National Assembly. [4]

Method

Qualitative status map using the current NTS schedule and the government’s November 5 proposal. Solid and dashed connectors distinguish the existing schedule from the change requiring legislation; lengths do not measure time or probability.

Scope

Status as of Nov 5, 2026. The proposed 2029 date is not enacted; the graphic does not forecast passage.

Infographic by CryptoSlate

The Democratic Party previously agreed to a two-year moratorium in December 2024. The NTS says an amendment passed that month produced the January 2027 timetable now facing investors.

What South Korea’s scheduled crypto tax would cover

Under the NTS framework for residents, crypto income comes from transfers and lending after acquisition costs and associated expenses are deducted. An annual 2.5 million won basic deduction applies, followed by a 20% national income-tax rate. The calculation therefore concerns income after costs and the deduction, rather than the total value of an investor’s holdings.

The combined rate is 22% when local income tax is included, as separately described in Kim Sang-hoon’s parliamentary release.

For crypto held before Jan. 1, 2027, the NTS uses the higher of actual acquisition cost and the asset’s 2026 year-end market value as the starting cost basis. Residents net annual gains and losses and report the income in May of the following year.

The 2027 dates describe the current scheduled regime. Moving the start to 2029 and introducing the proposed loss relief will require legislative changes.