South Korea considers postponing its crypto gains tax to 2029

A discussion, not an adopted decision

The South Korean government is studying a new postponement of taxation on income related to digital assets, according to information published on October 26 by Newsis. The envisaged calendar would push back the framework to 2029, while its entry into force remains planned for January 2027. The reported declarations describe consultations between authorities and upcoming parliamentary discussions. They do not constitute a definitively adopted text modifying the current date. A change of calendar will therefore have to be confirmed by the authorities and Parliament.

The fiscal project provides for a global rate of 22%, including the local component, on the concerned income beyond the expected allowance. This percentage does not correspond to a tax applied to each transfer nor to the total value of a portfolio. It is necessary to distinguish the definition of taxable income, deductible expenses, and the date of application. A debate on the calendar does not automatically modify all these parameters.

Foreign data at the center of the debate

One of the arguments advanced concerns the information necessary to follow operations carried out on foreign platforms. The OECD CARF framework organizes the exchange of information on cryptoassets between participating administrations. South Korea plans to start these exchanges in 2027, while the United States has committed to 2029. The cited authorities thus fear an unequal coverage of transactions during the intermediate period.

The calendar of this international framework and that of a national tax remain, however, two distinct subjects. A country can tax income before benefiting from all the envisaged automated exchanges. Additional data must facilitate control and reconciliation of operations; they do not, on their own, create the fiscal rule. The South Korean debate therefore concerns the preparation of the administration as much as the treatment of investors.

Parliament will have to set the next steps

Newsis reports a final decision after parliamentary discussions on fiscal modifications. A proposal supported within the majority already retains the 2029 deadline. Its examination does not, however, prejudge the text that will finally be voted. If the postponement were to materialize, it would be a new shift of a framework postponed several times. The relevant follow-up is that of official decisions, and not the mere repetition of a scenario in headlines.

For the market, a more distant fiscal deadline can change expectations, without allowing to deduce a rise in prices or a precise influx of capital. The applicable rules also depend on the nature of the income and the situation of the persons concerned. While waiting for a modification adopted, presenting 2029 as a certainty would be premature. The verifiable information is the existence of discussions on a postponement, with an official deadline of January 2027 still displayed by the administration.