South Korea postpones crypto tax to 2027

South Korea’s crypto tax implementation has been postponed once again, with lawmakers agreeing to delay its launch until January 2027. The decision comes after extended negotiations between the ruling People’s Power Party (PPP) and the opposition Democratic Party (DP). The DP initially opposed the delay, proposing an alternative plan to raise the tax threshold for crypto traders, but later conceded to the government’s timeline.

DP floor leader Park Chan-dae stated the postponement allows more time for institutional preparations, echoing concerns from party leader Lee Jae-Myung about the current system’s readiness for taxation. The amendment will now move forward for approval in a plenary session. Lawmakers have faced criticism for repeatedly delaying the tax, which was first scheduled to take effect in 2021.

The DP’s focus now shifts to opposing other government tax plans, including changes to dividend income and inheritance tax. Meanwhile, crypto traders in South Korea have expressed frustration, describing the tax situation as chaotic. While many welcome the postponement, some argue that political mishandling has caused unnecessary uncertainty in the industry.