[COVER STORY] Why does Korea keep delaying its crypto tax?

The South Korean government plans to postpone cryptocurrency income taxation by an additional two years until 2029, Finance Minister Lee Hyoung-il announced on Thursday. This decision reignites the debate on tax fairness and policy credibility following three prior postponements. Lee cited the need for more time to gather overseas transaction data and clarify the rules as the reasoning behind the delay.

However, the reversal, just a month after the government reaffirmed its intention to proceed in January, has sparked criticism over policy predictability and potential political motivations.

During a briefing, Lee stated that the government will collaborate with the National Assembly to implement the delay. This announcement follows a request from the ruling Democratic Party of Korea (DPK) Chairman Kim Min-seok for another postponement. The legislation in question would classify income from transferring or lending digital assets as miscellaneous income.

Annual net profits exceeding a 2.5 million won ($1,900) threshold would be taxed at 22 percent, encompassing local income tax. Calculating net profits would involve deducting acquisition costs and related expenses from proceeds.