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

The South Korean government plans to delay cryptocurrency income taxation for another two years to 2029, Finance Minister Lee Hyoung-il announced on Thursday, reigniting discussions about tax fairness and policy credibility after three prior postponements. Lee cited the need for additional time to gather data on overseas transactions and refine the rules.

However, this reversal, mere weeks after the government pledged continued progress, has sparked criticism over policy predictability and potential political motivations. During a press conference, Lee stated the government would collaborate with the National Assembly to implement the postponement. The revelation followed a day when Democratic Party of Korea (DPK) Chairman Kim Min-seok formally requested another delay.

According to the pending legislation, income derived from transferring or lending digital assets would be categorized as miscellaneous income. Profits exceeding 2.5 million won ($1,900) would be subject to a 22% tax, encompassing both national and local income taxes. The tax would be calculated by subtracting acquisition costs and associated expenses from proceeds.