• Democratic Party lawmakers on the National Assembly's Strategy and Finance Committee agreed on Nov. 3, 2026 to recommend a deferral of about two years to party leadership, CoinDesk reported on Nov. 4.
• The tax is 20% on annual crypto profits above 2.5 million won, plus a 2% local levy, and was first due in 2022; CoinDesk counts three earlier postponements.
• The stated reasons are an international tax data-sharing system due in 2029, a digital asset act expected in the first half of 2027, and untested exchange-to-tax-authority data links.
• Blockhead reported that the government's formal position was that the tax starts on schedule, and that any delay needs an amendment to the Income Tax Act before January 1.
• Until that amendment passes, the January 2027 start date in current law is the operative one for exchanges and custodians.

South Korea's ruling Democratic Party wants to postpone its crypto gains tax by about two years, from January 2027 to 2029, CoinDesk reported on Nov. 4, 2026. Party lawmakers on the Strategy and Finance Committee agreed on Nov. 3 to recommend the move to leadership. It would be the fourth deferral of a levy first scheduled for 2022. The step is a recommendation, not an enacted change.

What the party is asking for

The party is asking to move the start date to 2029. CoinDesk reports the tax is 20% on annual crypto profits above 2.5 million won, with a 2% local levy on top, starting Jan. 1, 2027 under current law. Committee secretary Oh Gi-hyoung was quoted as saying, "Most people seem to be talking about around two years." CoinDesk says the deferral will be considered with Income Tax Act amendments at a later tax subcommittee meeting.

Why lawmakers say they need time

The stated reasons concern infrastructure rather than investor sentiment. CoinDesk reports an international crypto tax information-sharing system is due in 2029, and that the Digital Asset Basic Act is expected in the first half of 2027. The party also wants to test data sharing between the National Tax Service and exchanges, and to run tax simulations on real transaction data. These are the party's own justifications, as relayed by CoinDesk.

A bill already tied the start date to data exchange

Blockhead reported on Oct. 20 that Democratic Party lawmaker Park Min-gyu and 13 co-sponsors had filed a bill on Oct. 16 that would start the tax on January 1 of the second year after Korea first exchanges crypto data under CARF. If that exchange begins in 2027, the start would fall in 2029. The bill argues authorities cannot see trades on overseas platforms until CARF is running.

Who has not signed on

The government's position is less settled than the party's. CoinDesk reports Finance Minister Lee Hyoung-il supports starting on schedule, while exchange group DAXA has asked for a delay. Blockhead reported on Oct. 20 that the government's formal position was that the tax starts on schedule, and that a ministry official said the finance ministry had no predetermined position going into a meeting with the five won-based exchanges. Both accounts predate any final decision.

What this means for exchanges and compliance teams

The practical issue is plumbing. A tax on crypto gains depends on exchanges delivering reliable transaction and cost-basis data to the tax authority, and the party's call for data-sharing tests suggests that link is not yet proven. Until the National Assembly amends the Income Tax Act, the January 2027 date in current law is the operative one. Blockhead reported the National Tax Service was preparing detailed guidance around November. Watch for the tax subcommittee's schedule and for any committee bill.