South Korea plans to postpone the cryptocurrency capital gains tax for two years until 2029, and may allow losses to be carried forward for deductions

According to a report by the Korean News Agency, South Korean Finance Minister Lee Hyoung-il stated that the government plans to postpone the cryptocurrency capital gains tax originally scheduled for implementation in 2027 by two years to 2029 and will consult with the National Assembly to advance related legislation. The South Korean government explained that it plans to start exchanging virtual asset tax information with the United States in 2029, and taxing before this could put the domestic cryptocurrency market at a competitive disadvantage. This delay aims to improve the taxation mechanism for domestic and foreign transactions and enhance tax fairness.

Under the current plan, the portion of individual annual cryptocurrency gains exceeding 2.5 million Korean won (approximately $1,869) will be subject to a tax rate of 22%. If the postponement plan is ultimately approved, this will be the fourth delay in implementation since South Korea first pushed for cryptocurrency capital gains taxation in 2020. In addition, the South Korean government also plans to study allowing investors to carry forward losses to offset future gains, proposing a three-year limit; at the same time, it will establish a government-business working group to improve the taxation details for different transaction scenarios and promote the legislation of the digital asset bill. The government plans to submit relevant amendments to the National Assembly during the regular session in 2027.