The government plans to delay the start of virtual asset income taxation to 2029, citing the timing of information exchange with the US and forthcoming digital asset legislation.
Korea (Rep.) will consult the National Assembly to defer by two years the virtual asset income tax due to take effect next year, Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il announced at a briefing in Seoul on 5 November 2026.
The tax is now expected to start in 2029.
The government said immediate taxation could disadvantage the domestic market, as information exchange with the US on virtual assets will begin only in 2029. It also expects the planned Digital Asset Act to bring significant changes to the industry’s institutional foundations.
Lee said the government will review conditions for securing overseas tax data, including through the Crypto-Asset Reporting Framework, and will seek to allow loss carry-forward deductions for three years. It will also work with the Financial Services Commission to speed up enactment of the Digital Asset Act.
A Public–Private Joint Working Group on Digital Asset Taxation will be formed to discuss system reforms and detailed tax standards. Any required amendments will go to the National Assembly in 2027, and detailed tax standards will be announced in the first half of 2028.
