The crypto income tax South Korea is due to start collecting on Jan. 1, 2027 should be put off, the ruling Democratic Party formally told the government, though it has yet to say for how long.

“The Democratic Party formally proposes to the government a deferral of taxation on virtual asset income,” the Democratic Party chief Kim Min-seok told the party’s Supreme Council in the National Assembly on Nov. 4, according to Korean news agency News1. Kim spoke in Korean; the quotes in this story are Unchained’s translations.

Kim said the party reached its position after consultations between the party and the government, centered on the Assembly’s finance committee, and a meeting with crypto businesses. “We agreed that it is desirable to first enact the Digital Asset Basic Act to set up the overall framework and give companies and investors an adaptation period,” he said. That law, which would set the ground rules for the industry, has not yet been enacted.

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No End Date Yet

Kim acknowledged the tax had been put off before. “This time we will clearly set the deferral period and thoroughly prepare preceding tasks such as use of overseas transaction information, computer verification, and tax guidance methods,” he said.

He did not name that period. Among Democratic Party lawmakers on the finance committee, who agreed on Nov. 3 to recommend a delay, two years has mainly been discussed, Electronic Times reported, with a final call expected after high-level talks between the party and the government. Government officials were reportedly leaning toward a January 2029 start, Unchained reported on Oct. 26.

The tax would apply a 22% rate, including local tax, to crypto income above 2.5 million won. It was written into law through a 2020 amendment to the Income Tax Act and has been pushed back three times, so another postponement would be the fourth.

Deputy Prime Minister and Finance Minister Lee Hyung-il told an Oct. 22 parliamentary audit that he would decide after careful deliberation, Fnnews reported.

What Comes Next

Kim’s statement turns a committee recommendation into the ruling party’s official position, but the delay is not law yet: the National Assembly still has to amend the Income Tax Act before Jan. 1, 2027. With Kim promising a fixed period this time, the length of the delay is now the main open question.

Kim said at the meeting that the party would move faster on changes to the legislation and tax code, so that “companies actively invest in new services and users can trade with peace of mind.”

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