South Korea’s government is considering postponing implementation of a 22% cryptocurrency income tax to 2029, delaying a policy first proposed in 2020 that was originally set to begin January 1, 2027.
A Blue House official stated: “We are discussing postponing the implementation of virtual asset taxation.” The delay hinges on coordination with the United States through the OECD Crypto-Asset Reporting Framework. South Korea is scheduled to implement the OECD framework in 2027, but the US is not expected to join until 2029.
The National Tax Service listed January 1, 2027 as the implementation start date as of Monday. The tax applies to investors earning more than 2.5 million Korean won (approximately $1,883) annually and combines a 20% income tax with a 2% local tax.
According to South Korean officials, the US accounts for nearly half of the virtual asset market, making data-sharing alignment critical before enforcement begins. The government cannot share US tax data with other nations until the US formally participates in the OECD framework, creating a technical barrier to implementation in 2027.
The policy has already experienced multiple delays since its 2020 proposal. A shift to 2029 would give the US two additional years to join the OECD Crypto-Asset Reporting Framework and establish the data-sharing infrastructure required for coordinated international tax enforcement on cryptocurrency transactions.
