Finance ministry officials will convene with representatives of the country's major crypto exchanges on Oct 20 to discuss a legislative proposal that could shift the start of South Korea's 22% cryptocurrency income tax from Jan 2027 to Jan 2029.
The tax, which applies after local taxes are added, was originally slated for implementation in January 2027, but the schedule has already been deferred three times since the policy was first announced.
Lawmakers' draft ties the tax's effective date to South Korea's participation in the OECD’s Crypto‑Asset Reporting Framework, meaning cross‑border data sharing would need to be in place before the levy can be enforced.
If the postponement is approved, exchanges would gain an additional two‑year window to adapt compliance systems and educate users, while the government would delay revenue from the tax by an estimated two fiscal years.
Market participants will likely watch the outcome of the Oct 20 meeting and any subsequent parliamentary vote, as well as the timeline for South Korea’s adoption of the OECD reporting standards, for clues on regulatory certainty and tax burden.
This story was compiled by the Tradexus News Desk with the help of AI.
