South Korea’s Ruling Party to Propose Another Bill to Delay Crypto Tax to 2029

South Korea’s ruling People Power Party plans to propose another bill to delay taxation on virtual assets, or cryptocurrencies.

Edaily reported on August 13 that People Power Party lawmaker Kim Sang-hoon plans to introduce as early as this month a proposed amendment to the income tax law that would postpone taxation on crypto investment income by two years, from January 2027 to January 2029. The bill is currently under review by the National Assembly Secretariat’s Legislative Office, the report said.

It would be the second crypto tax deferral bill from the People Power Party. On August 10, party lawmaker Jeong Seong-guk proposed a separate amendment to delay the start of taxation on crypto investment income by three years, from January 2027 to January 2030.

The government, however, has maintained that it will proceed with crypto taxation as scheduled in January 2027. At a briefing to the National Assembly’s Strategy and Finance Committee last month, Deputy Prime Minister Koo Yun-cheol, who also serves as finance minister, said the government would move ahead as planned and make adjustments later if needed.

The National Tax Service has also recently created a new Digital Asset Division in preparation for the tax rollout next year. The agency plans to issue crypto tax guidelines as early as October 2026.

Opposition over tax fairness is also growing. Critics say pressing ahead with crypto taxation after the abolition of the financial investment income tax on stock investment gains and similar income would undermine tax equity. A public petition calling for the repeal of crypto taxation has drawn support from more than 58,000 people and has been referred to the National Assembly.