Ruling Party Lawmaker Proposes 3-Year Delay to South Korea Crypto Tax, Seeks 2030 Start

South Korea’s ruling People Power Party plans to submit a bill to delay taxation on virtual-asset income, currently set to take effect next year.

MBN reported on August 10 that Rep. Jeong Seong-guk of the People Power Party will introduce an amendment to the income tax law to postpone the start of virtual-asset income taxation by three years, moving the date to Jan. 1, 2030, from Jan. 1, 2027.

The amendment aims to improve predictability for taxpayers and reduce confusion during implementation while authorities review the virtual-asset taxation system more broadly.

Under current law, income from the transfer or lending of virtual assets will be classified as miscellaneous income and taxed starting in January next year. Annual gains exceeding 2.5 million won ($1,800) would be subject to a 22% rate, made up of a 20% miscellaneous income tax and a 2% local income tax.

The People Power Party has argued that the tax should be abolished or delayed. It says taxing only virtual assets is unfair when ordinary investors effectively pay no tax on stock capital gains following the abolition of the financial investment income tax.

Rep. Song Eon-seok of the People Power Party previously proposed a separate amendment to the income tax law that would delete provisions on taxing virtual-asset income. That bill is currently pending before the National Assembly’s Strategy and Finance Committee.

Jeong said virtual-asset taxation should be introduced only after investor protection measures and a fair taxation framework are fully in place. He added that lawmakers need enough time to overhaul the system and minimize market disruption.