South Korean Lawmaker Proposes Delaying Cryptocurrency Tax Implementation to 2030

On August 10, 2026, South Korean Representative Jeong Seong-guk proposed an amendment to the Income Tax Act to delay cryptocurrency taxation from January 1, 2027, to January 1, 2030. The proposal, submitted with less than five months before the scheduled start, aims to address gaps in investor protection and regulatory infrastructure. Under current law, crypto gains over 2.5 million won face a 22% tax. The tax has already been delayed three times since its original 2022 target due to market readiness concerns.

Cryptocurrency tax delay to 2030

• ▪Under the proposed amendment to the Income Tax Act, the taxation on cryptocurrency investment income in South Korea would be postponed by three years to begin on January 1, 2030.
• ▪Representative Jeong Seong-guk proposed an amendment to the Income Tax Act on August 10, 2026, to delay South Korea's cryptocurrency tax implementation from January 1, 2027, to January 1, 2030.

Investor protection framework gaps

• ▪Representative Jeong Seong-guk stated that the cryptocurrency tax delay is necessary because investor protection measures and taxation systems are currently insufficient.
• ▪The proposed cryptocurrency tax delay aims to provide time to establish investor protection systems and reduce taxpayer confusion before the tax takes effect.

Regulatory infrastructure incomplete

• ▪South Korea's National Assembly is still discussing follow-up legislation to regulate cryptocurrency business activities, listing standards, and market management systems.
• ▪Under the current South Korean Income Tax Act, cryptocurrency gains exceeding 2.5 million Korean won are subject to a 20% tax rate, or 22% including local income tax, starting January 1, 2027.

Prior tax postponements history

• ▪Due to insufficient infrastructure, the implementation of South Korea's cryptocurrency tax has been postponed three times, moving from 2022 to 2023, 2025, and then 2027.
• ▪South Korea's cryptocurrency taxation was originally scheduled to take effect in January 2022 under a 2020 amendment to the Income Tax Act.

Legislative proposal by lawmaker

• ▪Representative Jeong Seong-guk of the ruling People Power Party proposed the Income Tax Act amendment in South Korea on August 10, 2026.
• ▪The proposed bill to delay cryptocurrency taxation was submitted to South Korea's National Assembly with less than five months remaining before the scheduled January 1, 2027 implementation date.

Market stability concerns

• ▪The proposed cryptocurrency tax delay seeks to improve taxpayer predictability and minimize market disruption by refining the regulatory framework during the postponement period.
• ▪Cryptocurrency industry representatives have raised concerns that taxing investments before establishing market management systems could cause significant market confusion and taxpayer uncertainty.

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