South Korea’s ruling Democratic Party (DP) will seek a delay to the cryptocurrency gains tax due Jan. 1, 2027, after its supreme council backed the move, DP leader Kim Min-seok said, The Korea Herald reported.
Kim said the council wants companies and investors to have more time to prepare. He said the council supports enacting the Digital Asset Basic Act first as a step toward a broad framework for digital assets.
The Korea Herald reported that annual cryptocurrency gains above 2.5 million won ($1,880) would face a 22% tax, including local income tax.
The tax is scheduled to take effect Jan. 1, 2027. South Korea introduced the scheme in 2020, and implementation has been postponed three times. If accepted, the latest request would be the fourth delay.
The proposal follows an earlier party debate over another postponement, when members had not settled on a position. In earlier coverage of the party’s delay discussions, EconoTimes reported that the party cited unfinished tax infrastructure and limited access to exchange trading records as reasons for seeking more preparation time.
