South Korea Delays Crypto Gains Tax to 2029 in Fourth Postponement, Adds Three-Year Loss Carryforward

Published November 5, 2026, 8:45 PM PKT. Based on Yonhap News Agency's report of the finance minister's November 5, 2026 press conference (primary source), with additional reporting by Unchained, AJU Press and news.bitcoin.com (secondary sources).

South Korea will seek to delay its planned tax on cryptocurrency gains by two years, moving the start date from January 1, 2027 to 2029, the government said on Thursday, November 5, 2026. Finance Minister Lee Hyoung-il announced the plan at a press conference in Seoul, saying the government will work with the National Assembly to amend the Income Tax Act. If lawmakers approve it, the delay would be the fourth postponement of a tax that was first legislated in 2020 and was originally meant to take effect in January 2022. The announcement turns a delay the ruling Democratic Party had called for a day earlier into the government's own plan, and it comes with a new concession for investors: a three-year loss carryforward that would let crypto losses offset gains in later years.

The fourth delay since 2020

South Korea first moved to tax gains on virtual assets in 2020, with implementation set for January 2022. The start date was then pushed back to 2023, then to 2025, then to 2027, and now the government is asking for 2029. Under the scheme, a 22% tax, including local income tax, would apply to the portion of annual cryptocurrency gains above 2.5 million won, about $1,869, according to Yonhap. The 22% rate itself is unchanged. "It is with a heavy heart that I announce another proposed delay in taxation, after its implementation has already been postponed three times," Lee said at the briefing. "The government will use the two-year period to ensure that taxation of virtual assets can be implemented smoothly in 2029." The tax is already law, so nothing changes for investors until the National Assembly votes to amend the Income Tax Act. The proposal follows a recommendation from ruling party lawmakers on November 3, and an October 20 hearing at which the National Tax Service summoned five exchanges, Upbit, Bithumb, Coinone, Digital X and GOPAX, to discuss the looming tax, as MABOnChain reported at the time.

Why 2029: the US data exchange

The government's main reason is timing on international information sharing. South Korea is set to begin exchanging information on virtual assets with the United States in 2029, and the finance ministry said introducing the tax before then could put the domestic cryptocurrency market at a disadvantage, because overseas transactions would remain harder to track. "The proposed delay aims to uphold the basic principle that income should be taxed while improving the effectiveness of taxation on domestic and overseas transactions, ensuring greater fairness among taxpayers, and establishing a reliable and stable framework for taxation," the Ministry of Finance and Economy said. The ministry also pointed to gaps in overseas transaction reporting and the need to finish building the regulatory framework, including a digital asset law it is developing with the Financial Services Commission to promote sound market growth and protect users. South Korea has one of the world's most active crypto markets, with industry estimates putting the number of domestic crypto investors above 13 million, so the timing of the tax is a live political question as well as a fiscal one.

A three-year loss carryforward

Alongside the delay, the government plans to let investors carry forward trading losses for up to three years to offset future taxable gains, following similar practices in the United States and Britain, according to Yonhap. The change matters because crypto prices are volatile, and a single bad year can wipe out gains that the tax would otherwise capture in isolation. The ministry said it will continue to monitor developments in international information-sharing arrangements for taxation on overseas transactions, and that the carryforward is part of making the eventual tax fairer once it takes effect. The loss provision and the delay both still need legislation, so neither is final until the Assembly acts.

What happens next: working group, 2027 bill, 2028 rules

The government set out a timetable for the two-year pause. It plans to form a public-private working group to refine the tax system, develop detailed taxation rules for various transactions and make filing easier for taxpayers. "The working group will hold its first meeting soon and continue discussions through the first half of next year," the finance ministry said, adding that it plans to submit legislative amendments to the National Assembly during its regular session in 2027. Detailed taxation standards would follow in the first half of 2028, under the ministry's plan. "We will work closely with the National Assembly on the necessary legislation and overhaul our tax rules and enforcement systems to ensure the tax is applied fairly," the ministry said. Until the Assembly votes, the start date stays January 1, 2027, so the delay is a proposal, not yet a change in the law.

Sources

• Yonhap News Agency, (LEAD) S. Korea to seek 2-year delay in tax on cryptocurrency gains, November 5, 2026 (primary source: Finance Minister Lee Hyoung-il announced the two-year delay from 2027 to 2029 at a Seoul press conference; fourth postponement since 2020; 22% tax on annual gains above 2.5 million won, about $1,869; US virtual-asset information exchange begins 2029; three-year loss carryforward; public-private working group through the first half of 2027, legislative amendments in the 2027 regular session, detailed standards in the first half of 2028; work with the Financial Services Commission on a digital asset law)
• Unchained, South Korea's Finance Ministry Joins Push to Hold Off Crypto Tax Until 2029, November 5, 2026 (secondary reporting: the ruling Democratic Party called for a delay the day before the ministry's announcement; the tax is already law and only the start date changes once lawmakers amend the Income Tax Act; working group to sort open issues by the first half of 2027)
• AJU Press, South Korea to postpone crypto gains tax again until 2029, November 5, 2026 (secondary reporting: fourth postponement since the system was legislated in 2020; originally scheduled for 2022, then pushed to 2023, 2025 and 2027; 20% national tax plus local tax for a combined 22% on gains above 2.5 million won, about $1,860; three-year loss carryforward; proposed reforms by the first half of 2027)
• news.bitcoin.com, South Korea Pushes Implementation of Crypto Income Tax to 2029, November 5, 2026 (secondary reporting: government announced the delay on November 4 in its account, citing the international data-sharing timeline; loss carryforward aligns rules with the United States and Britain; 22% tax on annual net income above $1,869 from transferring or lending digital assets)

This article is news reporting and is not investment advice.