South Korea plans to postpone cryptocurrency gains tax by two years to 2029, or allow loss carryforward deductions.

BlockBeats news, November 5 - According to Yonhap News Agency, South Korean Finance Minister Lee Hyoung-il stated today that the government plans to delay the cryptocurrency gains tax, originally scheduled for implementation in 2027, by two years to 2029, and will negotiate with the National Assembly to advance related legislation.

The South Korean government explained that it plans to begin exchanging virtual asset tax information with the United States in 2029, and taxing before then could put South Korea's domestic cryptocurrency market at a competitive disadvantage. The delay aims to improve the taxation mechanism for domestic and international transactions and enhance tax fairness.

Under the current plan, individuals' annual cryptocurrency gains exceeding 2.5 million Korean won (approximately $1,869) will be subject to a 22% tax rate. If the delay plan is ultimately approved, this will be the fourth postponement of implementation since South Korea first pushed for cryptocurrency gains taxation in 2020.

Additionally, the South Korean government plans to study allowing investors to carry forward losses to offset future gains, with a proposed three-year limit; it will also establish a government-private working group to refine taxation rules for different transaction scenarios and promote digital asset bill legislation. The government plans to submit the relevant amendment to the National Assembly during the regular session in 2027.