Quick Take
- South Korea’s government will pursue a two-year crypto income-tax delay to 2029 with the National Assembly.
- The plan also includes a proposed three-year loss carryforward to offset later gains.
- The changes require legislation; NTS guidance still lists January 2027 as the scheduled start.
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.
January 2027 remains the scheduled start
The government proposes a 2029 start, but the current January 2027 timetable remains until legislation changes it.
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.
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.


