South Korea gathers industry and expert views on crypto tax due to start in January
In short
South Korea's Ministry of Finance and Economy held a field meeting on 20 October with crypto exchange operators, the DAXA exchange body and academics on the crypto income tax due to start on 1 January. First Vice Minister Kwon Dae-young said the government would weigh the views raised and consult other ministries. Calls to delay the tax are growing, and it is not settled whether it will take effect as scheduled.
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The Ministry of Finance and Economy (재정경제부) said First Vice Minister Kwon Dae-young held a field meeting on crypto taxation on 20 October at the PPS Hall of the Seoul Regional Public Procurement Service. The Financial Services Commission, crypto businesses and experts attended, according to Yonhap and Maeil Business. [ 5 , 7 ]
Industry attendees included exchange operators Dunamu, Bithumb, Digital X, Coinone and Streami, the DAXA exchange body and Tiger Research. Newsis also listed academics and a lawyer among the experts present. Asia Economy named Kim Geon-young, the income and corporate tax policy director-general, and Yoo Yeong-jun of the Financial Services Commission on the government side. [ 4 , 5 , 6 ]
Kwon said new transactions and services were appearing quickly and cross-border trading was growing, so the tax system needed to be designed and run with market changes and transaction features fully considered. He said the principle that tax follows income must be respected, but that tax infrastructure and market rules must be in place together for it to take root. He said the government would comprehensively check readiness, including conditions for cross-border information exchange, rules by transaction type and ease of filing, and would consider the views raised and consult relevant ministries. [ 5 , 7 ]
Professor Park Hoon of the University of Seoul presented on the main issues, overseas cases and international information exchange. He said the US, UK and Japan already tax crypto while Korea has delayed its tax three times since 2020, and that a comprehensive roadmap is needed. Industry attendees asked for clear tax standards and for a preparation period to build and test systems for submitting tax data. Experts urged clearer rules for staking and other transaction types, and a review of loss carry-forward and easier filing. [ 4 , 5 , 7 ]
Under current income tax law the tax starts on 1 January next year. Income from selling or lending crypto is classed as other income and taxed at 22%, including local income tax, on annual profit above 2.5 million won. The first filing and payment would be in May 2028. Newsis reported before the meeting that the government was keeping to the schedule while calls for delay grew, including in the ruling Democratic Party. It said Park Min-kyu submitted a bill on 16 October to postpone the start date, and that a survey found more than seven in ten investors oppose the tax. [ 2 , 3 ]
Maeil Business reported that the tax was originally due to start last January and was delayed two years after a ruling-opposition agreement in December 2024. Asia Economy reported expectations of another delay and said the government had said at an audit on 6 October that it would gather stakeholder opinions. It said the ministry would also take part in a ruling-party forum in parliament on 2 November. The documents report no decision on the start date. [ 3 , 7 ]
Why it matters
The tax is scheduled to start in January, and the outlets say calls for a further delay come from industry and from parties in parliament. The meeting shows the government collecting views before deciding, but the documents report no decision.
Key facts
- First Vice Minister Kwon Dae-young of the Ministry of Finance and Economy (재정경제부) chaired a field meeting on crypto taxation on 20 October at the PPS Hall of the Seoul Regional Public Procurement Service. [ 4 , 5 , 7 ]
- Attendees included the Financial Services Commission, operators Dunamu, Bithumb, Digital X, Coinone and Streami, the DAXA exchange body, Tiger Research and academic experts. [ 4 , 5 , 6 , 7 ]
- Under current income tax law, crypto income tax starts on 1 January next year, at 22% including local income tax on annual profit above a 2.5 million won deduction. [ 2 ]
- Kwon said the tax system must be designed and run with market changes and the features of transactions fully considered, and that the government would check readiness including cross-border information exchange. [ 5 , 7 ]
- Industry attendees asked for clear tax rules and for time to build and test systems for submitting tax data, and for fairness with overseas-exchange users to be considered. [ 4 , 5 , 7 ]
- Experts suggested clarifying rules by transaction type such as staking, and reviewing loss carry-forward and easier filing. [ 4 , 5 , 7 ]
- Newsis reported that the ruling Democratic Party's Park Min-kyu submitted a bill on 16 October to postpone the start date, linking it to the year in which crypto-asset transaction data is first exchanged internationally. [ 2 ]
Confirmed by several sources
- The ministry held the field meeting on crypto taxation on 20 October, chaired by First Vice Minister Kwon Dae-young. [ 1 , 4 , 5 , 7 ]
- Kwon said the principle that tax follows income should be respected, but that tax infrastructure and market rules must be in place together. He said the government would comprehensively check readiness and would consider the views raised and consult relevant ministries. [ 5 , 7 ]
- Professor Park Hoon of the University of Seoul said that the US, UK and Japan already tax crypto while Korea has delayed its tax three times since creating it in 2020, and that a comprehensive roadmap is needed. [ 4 , 5 , 7 ]
- The tax was originally due to start last January and was delayed two years to 1 January next year after a ruling-opposition agreement in December 2024. [ 7 ]
Still unclear
- Whether the tax will start on 1 January as scheduled or be postponed again. Newsis said the government kept its stance of taxing as scheduled, while Asia Economy reported expectations of another delay. The documents report no decision.
- When the meeting took place. The ministry, as relayed by Yonhap and Asia Economy, said the meeting was held on the morning of 20 October, while an earlier Asia Economy article said it would be held that afternoon.
- Whether the government is now reconsidering the start date. Asia Economy's summary says the government would carefully review whether to implement the tax. The quoted remarks from Kwon speak of checking readiness and considering the views raised.
What local media are saying
Timeline, local time
- Newsis reported that the government would hold a closed-door meeting with the five major exchanges and DAXA that day. [ 2 ]
- Asia Economy reported expectations of another delay and said the ministry would join a ruling-party forum in parliament on 2 November. [ 3 ]
- Yonhap and Newsis reported that the meeting had been held and that the government was collecting opinions. [ 4 , 5 ]
- Asia Economy reported that Kwon said the tax would be reviewed carefully in light of market changes. [ 6 ]