South Korea's Deputy Prime Minister: Virtual Asset Income Tax Postponed to 2029

South Korea’s government will delay its virtual asset income tax by two years to 2029, Deputy Prime Minister and Finance Minister Lee Hyung-il said on Nov. 5, citing the need to expand infrastructure for effectively taxing overseas transactions. Lee said that after 2029, if Korea receives virtual asset transaction data from the United States, authorities will have sufficient information to tax investors using U.S. exchanges. The government will also form and run a public-private joint task force on digital asset taxation to rationalize the tax system and expand collection infrastructure, while accelerating digital asset legislation. The delay pushes back a levy that had been set to take effect in 2027, giving Korean crypto investors and exchanges more time to prepare. Watch for the task force’s proposals, progress on the digital asset law, and whether U.S. data-sharing arrangements are in place before the new 2029 start date.