South Korea postpones cryptocurrency tax again until 2027

at today's press conference, Park Chan-dae, the leader of the largest opposition party in South Korea, the Democratic Party of Korea, announced that they will abandon their plan to implement a cryptocurrency capital gains tax in 2025 and agree to postpone it for another two years until 2027. The proposal to "delay the cryptocurrency capital gains tax" was put forward by the South Korean government and the ruling party, the People Power Party. The Democratic Party of Korea previously stated that delaying taxation was a political trick of the ruling party.

Initially, South Korea planned to levy a 20% tax (22% for local taxes) on cryptocurrency profits, which was originally scheduled to take effect on January 1, 2022. Due to strong opposition from investors and the industry, the plan has been postponed twice until January 1, 2025. After today's press conference, the tax collection has been postponed again until 2027. The People Power Party also proposed that "a two-year grace period for the cryptocurrency gains tax is still not enough, and it should be extended to 2028. Rapid taxation of cryptocurrencies is not advisable, as investors may leave the market because of it. The People Power Party hopes to postpone the implementation time to 2028 to fulfill its promises during the election period."