South Korea Faces Pressure to Delay 22% Crypto Tax Until 2029

South Korea will meet executives from its five largest cryptocurrency exchanges on October 20 as pressure grows to postpone the country’s 22% crypto tax until 2029. The discussions come as lawmakers question whether the government can implement the controversial tax framework by January 2027.

Officials will consult exchange operators about reporting requirements, tax collection challenges, and regulatory readiness. Meanwhile, lawmakers are advancing proposals that could extend the tax deadline by another two years.

Government Seeks Industry Input Before Tax Deadline

The meeting will bring together representatives from Upbit, Bithumb, Coinone, Korbit, and GOPAX, alongside executives from the Digital Asset eXchange Alliance (DAXA).

Senior officials from the Ministry of Economy and Finance and the Financial Services Commission are also expected to participate. The discussions will focus on practical challenges surrounding cryptocurrency taxation and the industry’s ability to comply with upcoming requirements.

Under existing legislation, South Korea plans to introduce a 22% tax on qualifying cryptocurrency income starting January 1, 2027. The rate includes a 20% income tax and a 2% local tax.

Investors will receive an annual deduction of 2.5 million won, approximately $1,800, before the tax applies. The framework primarily covers income generated through cryptocurrency transfers and lending.

Lawmakers Seek Another Delay Until 2029

Democratic Party lawmaker Park Min-kyu is pursuing legislation that could effectively postpone cryptocurrency taxation until 2029.

The proposal would link implementation to international cryptocurrency transaction reporting arrangements. Supporters argue that authorities need more reliable information about overseas trading activity before introducing the tax.

Industry representatives have also raised concerns about unclear taxation rules for staking, airdrops, decentralized finance, and other digital asset transactions. Furthermore, questions remain about calculating acquisition costs and ensuring consistent treatment across domestic and international platforms.

Government Maintains January 2027 Timeline

Despite growing political opposition, South Korean authorities continue preparing for the existing January 2027 implementation date.

National Tax Service Commissioner Lim Kwang-hyun confirmed on October 13 that officials were preparing the necessary systems. Authorities also expect to provide additional taxation guidance in November.

However, another postponement would require legislative approval, leaving the final timeline uncertain.

The October 20 meeting could therefore become an important step in determining whether South Korea proceeds with cryptocurrency taxation or grants the industry additional preparation time.