South Korea Crypto Tax Delay Proposal Targets 2030 Start

South Korea's long-running debate over when to tax cryptocurrency gains is back on the legislative floor. People Power Party Representative Jeong Seong-guk has proposed pushing the effective date of the crypto income tax provisions from January 1, 2027, to January 1, 2030. The filing comes just days after Deputy Prime Minister and Finance Minister Koo Yun-cheol told lawmakers on July 29 that the government was proceeding with the 2027 schedule as planned.

Jeong's argument is straightforward: regulators need more time to build workable rules. The current framework would apply a combined 22% tax on annual crypto gains above 2.5 million won, split as a 20% national income tax and a 2% local tax. One structural issue has drawn particular criticism. Under the existing proposal, cryptocurrency income is classified as miscellaneous income rather than capital gains. That classification prevents investors from carrying losses forward to offset future profits, a constraint Jeong and other critics say is impractical in a market where sharp drawdowns across tax years are common.

A separate bill from fellow People Power Party lawmaker Song Eon-seok goes further. Song has introduced legislation seeking to remove the crypto income tax provision altogether. Supporters argue that applying a distinct tax structure to digital assets while treating traditional investments under the capital gains regime creates an uneven investment environment.