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South Korea to Introduce Taxes on Digital Assets in 2029
The delay reflects concerns over U.S. information sharing, market fairness and investor protection as officials prepare detailed rules and amendments.
- On Thursday, South Korea announced a two-year delay in implementing digital asset taxes, shifting the start date to 2029. Finance Minister Lee Hyoung-il said the extension provides time to refine rules and secure overseas transaction data.
- The Ministry cited infrastructure improvements and data exchanges with the United States beginning in 2029 as reasons for the delay. Officials also noted the extension allows for asset definition changes under the Digital Asset Basic Act.
- Tiger Research and Chainalysis found 73.7 percent of 2,423 Korean cryptocurrency investors opposed implementation under current rules, though 51.5 percent said they would accept taxation if shortcomings were addressed. Industry groups welcomed the delay, citing difficulties verifying acquisition costs for overseas transfers.
- DPK Chairman Kim Min-seok formally requested the postponement, prompting criticism from the People Power Party. Spokesman Mun Jong-hyeong called the delay "typical populist politics," accusing the government of prioritizing young voters' approval ratings over market infrastructure.
- During the extended preparation period, the government plans to allow investors to carry losses forward for three years. Legislative amendments will be submitted to the National Assembly in 2027, with detailed tax guidelines expected in the first half of 2028.
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Why does Korea keep delaying its crypto tax?
The government will seek to postpone cryptocurrency income taxation by another two years to 2029, Finance Minister Lee Hyoung-il said Thursday, renewing debate over tax fairness and policy credibility after three previous postponements. Lee said more time is needed to secure overseas transaction data and refine the rules. But the reversal, just a month after the government reiterated its commitment to proceeding in January, has drawn criticism o…
·Seoul, Korea (the Republic of)
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A bill introduced in South Korea postpones the digital asset tax until 2029, increases the annual deduction to 50 million won, and introduces a five-year loss offset.
Coverage Details
Total News Sources7
Leaning Left1Leaning Right0Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 25%
C 75%
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