South Korea’s debate over cryptocurrency taxation has reopened after an opposition lawmaker proposed delaying the planned levy on digital asset gains for another three years. The amendment would move the start date from January 1, 2027, to January 1, 2030, setting up a direct conflict with the government’s current position.
The proposal comes as policymakers continue to argue over whether the country’s tax framework for virtual assets is ready. Supporters of the delay say more time is needed to complete the review of the rules, improve investor protections, and build the systems required to apply the tax fairly.
Opposition proposal would postpone the levy
People Power Party Representative Jeong Seong-guk has introduced a bill to defer South Korea’s 22% tax on crypto profits until the start of 2030. Under current law, the tax is due to take effect on January 1, 2027.
According to the proposal, the extra three years would be used to finish reviewing the virtual asset tax regime and prepare the administrative framework needed for implementation. The argument behind the amendment is that taxpayers should face the levy only after a workable system is in place.
How the planned tax is structured
As currently designed, the tax would apply to income from selling or lending cryptocurrencies including Bitcoin and Ether. That income is categorized as “other income” under the existing framework.
The 22% rate combines a 20% national income tax and a 2% local tax. It applies only to annual gains above an exemption of 2.5 million won, or about $1,800 based on the figures cited in the report.
The source article gave an example of a trader earning 5 million won in annual Bitcoin profit. In that case, only 2.5 million won would be taxable after the exemption, producing a tax bill of roughly 550,000 won. Because crypto income is treated as miscellaneous income, losses cannot be carried forward.
A broader challenge to crypto taxation
The delay bill is not the only measure put forward by the People Power Party. A separate proposal from the same opposition bloc would remove the crypto income tax provision altogether.
Backers of that approach argue there is a fairness problem in taxing gains from virtual assets while gains on regular stocks are effectively not taxed. That parity issue has become part of the wider political dispute over whether crypto should be taxed under the current framework at all.
Government still backs a 2027 launch
Despite the opposition push, the government has kept its position unchanged. Finance Minister Koo Yun-cheol has reaffirmed that taxation of crypto gains will begin next year as scheduled, preserving the January 1, 2027 start date for now.
That leaves the issue with two clearly competing tracks: the administration’s plan to proceed on schedule and the opposition’s effort either to delay the levy until 2030 or eliminate the provision entirely. The next confirmed step is the legislative fight over whether either opposition measure can alter the timetable before the tax is due to take effect.
Source: Cryptopolitan