South Korean Lawmaker Proposes Crypto Tax Delay

South Korean lawmaker Rep. Song Eon-seok has proposed a bill to delay the taxation on crypto investment income by three years, initially set for January 1, 2025. The bill will be discussed in the National Assembly’s second half session, in line with the 2025 tax law amendment deliberations.
Rep. Song, chair of the National Assembly Planning and Finance Committee, argues that the current infrastructure is inadequate for fair and accurate tax collection on crypto transactions. This proposal follows previous government actions that also delayed the tax for similar reasons.
The bill aims to defer the imposition of a 20% miscellaneous income tax on crypto transfers and annual rental income exceeding 2.5 million won ($1,809). Recent discussions have focused on the practical aspects of calculating crypto transfer income, with the National Tax Service consulting with domestic crypto exchanges on tax calculation methods.
The National Assembly Research Service suggests aligning the taxation of virtual assets with the financial investment tax, treating them similarly to stocks. Multiple postponements have marked the history of South Korea’s crypto tax, initially scheduled for 2020 but delayed due to insufficient tax infrastructure and fairness concerns.
Given the current environment and the new deferral proposal, another postponement is likely, pending the positions of opposition party members. An official stance is expected in the upcoming “2024 Tax Revision Bill,” to be released in late July or early August. Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok has confirmed that the issue is under review.