South Korean Crypto Tax Now Agreed to Be Delayed Until 2028

Key Points:

• South Korea has delayed the implementation of its cryptocurrency tax to 2028.
• The South Korean crypto tax delay follows an agreement between the ruling People Power Party and the opposition Democratic Party.

According to Yonhap News, the South Korean government is postponing its cryptocurrency tax implementation as a result of an agreement between the ruling People Power Party, the largest opposition party, and the government.

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South Korean Crypto Tax Postpones Implementation to 2028

The South Korean crypto tax, originally scheduled to start in January 2025, has been put off for an additional two years.

That is the third time that the country has withdrawn from the implementation of a tax on crypto income after the initially proposed 20 per cent tax in 2020. The implementation of this policy was supposed to come live in 2021. However, it faced solid opposition from digital assets investors, which had postponed it from 2023 to 2025.

Now, according to an election promise by the PPP to the nascent cryptocurrency sector, lawmakers want to further postpone the implementation of the South Korean crypto tax to 2028.

Lawmakers Stumble Upon Other Broader Tax Reforms

The Democratic Party, which had partly opposed some items of the South Korean crypto tax policy, wanted the line softened, for example, by raising the tax deductibility threshold. The party has now agreed to the delay. The important issues that the tax raises relate to its wider implications for digital asset enterprises and the entire taxation framework in South Korea.

Other matters discussed by the National Assembly’s two committees, Planning and Finance, along with other measures, such as amendment of inheritance tax and dividend tax, created a stalemate in reaching a consensus on those additional reforms.