[COVER STORY] Korea seeks another crypto tax delay over gaps in overseas data and rules

Korea's Finance Minister, Lee Hyoung-il, announced on Thursday that the country plans to postpone cryptocurrency income taxation by another two years, this time to the year 2029. This comes after three previous postponements and reignites the debate surrounding tax fairness and policy credibility.

During a briefing, Lee emphasized the need for more time to gather overseas transaction data and perfect the rules governing cryptocurrency income tax. However, the decision to postpone the tax for the second time in a month has drawn criticism for its potential impact on policy predictability and potential political motives behind the move.

The Finance Minister stated that the government would collaborate with the National Assembly to seek the delay. This announcement followed a day when the ruling Democratic Party of Korea (DPK) Chairman, Kim Min-seok, formally requested another postponement.

The proposed legislation, set to be implemented, would classify income from transferring or lending digital assets as miscellaneous income. Annual net profits exceeding a 2.5 million won ($1,900) allowance would be taxed at a rate of 22 percent, including local income tax. To calculate net profits, acquisition costs and related expenses would be deducted from proceeds.