The South Korea crypto tax is heading for a fourth delay. Korean media reported on Sunday that the presidential office now favours pushing the 22% levy on crypto gains, due to start on 1 January 2027, back to 2029. Nothing is final yet: the National Assembly still has to amend the law, most likely during its November tax review. Markets barely moved, with Bitcoin near $80,260 at the time of writing.
| Coin | Price (USD) | Price (SAR) | 24h change |
|---|---|---|---|
| Bitcoin (BTC) | $80,260 | SAR 301,237 | -0.4% |
| Ethereum (ETH) | $2,326 | SAR 8,732 | -1.7% |
| XRP | $1.29 | SAR 4.85 | +1.3% |
Key points
- South Korea's tax on crypto gains is set at 22% on yearly profits above 2.5 million won, and it is legally due to start on 1 January 2027.
- Korean reports on 25 October say the presidential office now leans towards moving the start to 2029, which would be the fourth delay since the tax was passed in 2020.
- Nothing is law yet: the National Assembly must amend the Income Tax Act, and lawmakers are expected to settle it in the November tax review.
If you follow the market day to day, this is a different kind of story from the price swings we covered when Bitcoin fell below $80,000 as leveraged longs were wiped out. It is about rules, not charts, and it touches one of the most active crypto markets in the world. For the wider market picture from the day before, see our Crypto Today report for 24 October.
What moved the market
- Policy Seoul's presidential office signalled a likely delay of the crypto gains tax, according to the Seoul Economic Daily and The Hankyoreh.
- Local pricing On Upbit, Korea's largest won exchange, Bitcoin traded at 107,723,000 won at 19:04 KST (13:04 AST), about 1.4% above CoinGecko's global price converted into won.
- Global mood Bitcoin and Ether slipped slightly over 24 hours while XRP edged up, so the Korean news did not set the direction for the wider market.
The point to take from this list is that a tax delay is not the same thing as a price catalyst. Korean investors have lived with the threat of this tax for six years, and the start date has never once arrived. A fourth delay would mostly confirm what many traders already assumed. The small gap between Upbit and global prices, often called the "kimchi premium", was about the same for Bitcoin, Ether and XRP in our snapshot, which suggests normal local demand rather than a rush of buying on the headline.
Why the South Korea crypto tax keeps getting delayed
The tax itself is simple on paper. Under the 2020 revision of the Income Tax Act, profits from selling or lending virtual assets count as "other income" and are taxed separately from salary. Each person gets a basic deduction of 2.5 million won a year, about $1,890 at today's exchange rate, and the rest is taxed at 20% plus a 2% local tax, so 22% in total.
The start date is where things fall apart. It was first set for 2022, then moved to 2023, then to 2025. In December 2024, the National Assembly voted 204 to 33, with 38 abstentions, to push it to 1 January 2027, in the same package that scrapped a planned tax on stock market gains, Yonhap reported at the time.
The reasons given this time
According to the Seoul Economic Daily, a presidential official said the discussion "has moved toward delaying implementation". Three reasons stand out across the Korean reports we checked:
- Collection is not ready. Tax authorities can see trades on Korean exchanges, but not easily on foreign exchanges, decentralised platforms or person-to-person deals. Detailed rules are also unfinished, including how each type of transaction is treated, whether losses can be carried forward, and how the filing system will work.
- The United States joins late. Korea is in the first group of jurisdictions that will swap crypto account data under the OECD's Crypto-Asset Reporting Framework (CARF) from 2027. The United States is only in the 2029 group, and Bloomingbit, citing News1, reported that this gap is now seen as the biggest obstacle, since Korean authorities would otherwise have to trace US exchange accounts one by one.
- Young voters. The Hankyoreh reported that officials also pointed to young adults, for whom crypto is seen as an "asset ladder". Politics matters here: the first tax returns under a 2027 start would be due in May 2028, just after the April 2028 general election, as the Asia Business Daily noted.
The bills on the table
A delay needs a law, and three bills are already waiting. Both main parties have members pushing for a later start, which is why most observers expect the change to pass.
| Date or bill | What it does | Start of tax |
|---|---|---|
| 2020 Income Tax Act revision | Creates the 22% tax on crypto gains above 2.5 million won | 2022 (original plan) |
| Later revisions | Two postponements | 2023, then 2025 |
| 10 Dec 2024 vote (204 for) | Third postponement, current law | 1 Jan 2027 |
| Kim Sang-hoon bill (PPP), 28 Aug 2026 | Delay, citing gaps in tracking DEX, P2P and DeFi trades | 1 Jan 2029 |
| Kim Jae-seop bill, 23 Sep 2026 | Longer delay; exchanges must give users data to calculate their income | 1 Jan 2030 |
| Park Min-gyu bill (Democratic Party) | Start tied to the second year after the first CARF data exchange with the US | Effectively 2029 |
Not everyone in government wants to wait. At a 20 October meeting with exchanges, First Vice Minister of Finance Kwon Dae-young said income "should be taxed wherever it is earned", according to the Asia Business Daily. Critics also point out that the United States and Japan already tax crypto gains, so Korea looks like an outlier among large economies. Kwon also argued that tax infrastructure and market regulation need to be built together, a sign the ministry wants the extra time used, not wasted.
What it means for you
If you are a Korean resident, the practical answer for now is that nothing changes on 1 January unless the Assembly fails to act, which looks unlikely given cross-party support. It still makes sense to keep records of what you paid for each coin, because the eventual tax will be based on gains.
Here is how the maths would work once the tax starts. Say you make a net profit of 10 million won in a year. The first 2.5 million won is deducted, leaving 7.5 million won. At 22%, the tax would be 1,650,000 won, or roughly $1,245. You can check figures like this with our free percentage calculator.
For readers elsewhere, including in the Gulf, the bigger trend is CARF. The OECD's list, last updated on 14 September 2026, shows the UAE and Bahrain starting data exchanges in 2028, alongside Singapore and Hong Kong. As more countries share account data, offshore exchanges become less of a hiding place for gains. In Saudi Arabia, a public warning published by the Capital Market Authority states that virtual currencies are not regulated inside the Kingdom.
What to watch next
- Government and ruling party talks after the parliamentary audit ends, where an official line on the start date is expected.
- The November tax review in the National Assembly's committee, where the Income Tax Act amendment would be agreed.
- The final plenary vote. In 2024, the last delay passed on 10 December, alongside the budget. Until then, 1 January 2027 remains the legal start date.
How we checked this
We read the original Korean-language and English reports from the Seoul Economic Daily, The Hankyoreh and the Asia Business Daily, and compared them with Yonhap's record of the December 2024 vote and The Korea Herald's background report. We checked bill details against the National Assembly's legislative notice pages and the OECD's official CARF commitment list. Prices come from CoinGecko and Upbit's public data at 13:04 AST on 25 October 2026. We do not report rumours as facts: where the presidential office says nothing is final, we say so.
FAQ
Has South Korea officially delayed the crypto tax to 2029?
Not yet. The presidential office reportedly favours a delay, but the start date only changes when the National Assembly amends the Income Tax Act. That is expected in November or December 2026.
How much is the South Korea crypto tax?
22% (20% national plus 2% local) on yearly gains from selling or lending virtual assets above a 2.5 million won deduction.
How many times has it been delayed?
Three times so far, from 2022 to 2023, then to 2025, then to 2027. A move to 2029 would be the fourth.
Why does the United States matter?
The US will only start exchanging crypto account data under the OECD framework in 2029, so Korea would struggle to see gains its residents make on US platforms before then.
Not financial advice. This article is for general information only. Crypto assets are highly volatile and can lose all their value. WorldScope does not recommend buying or selling any asset. Check the rules that apply in your country and consult a licensed adviser before investing.
Sources
- Seoul Economic Daily: Presidential office decides to delay crypto tax again (25 Oct 2026)
- The Hankyoreh: presidential office on the crypto tax delay (25 Oct 2026, Korean)
- Asia Business Daily: crypto tax delay and the 20 October finance ministry meeting (25 Oct 2026)
- Bloomingbit, citing News1: US data exchange gap seen as main obstacle
- Digital Today: Park Min-gyu bill ties the start to CARF
- National Assembly bill no. 2220914 (Kim Sang-hoon and 11 others)
- Yonhap: Income Tax Act amendment passes, crypto tax delayed to 2027 (10 Dec 2024, Korean)
- The Korea Herald: Crypto tax postponed again (Dec 2024)
- OECD Global Forum: CARF commitments (updated 14 Sep 2026)
- Saudi Capital Market Authority: warning on virtual currencies
- CoinGecko market data and Upbit KRW-BTC market
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