South Korea plans to postpone the cryptocurrency income tax until 2029 and is considering introducing a loss carryforward deduction.

South Korean Finance Minister Lee Hyung-il stated that the government plans to postpone the implementation of a cryptocurrency income tax, originally scheduled for 2027, by two years to 2029, and will consult with the National Assembly to advance related legislation. South Korea plans to begin exchanging virtual asset tax information with the United States in 2029; the postponement aims to improve the taxation mechanism and avoid putting the domestic market at a competitive disadvantage. The current plan stipulates that an individual's annual cryptocurrency earnings exceeding 2.5 million won (approximately US$1,869) are subject to a 22% tax rate. If the extension plan is approved, this will be the fourth time South Korea has postponed the implementation of this tax since 2020. The South Korean government plans to study allowing investors to carry forward losses to offset future earnings, with a proposed three-year timeframe. A government-business working group will be established to refine the tax details, and amendments are planned to be submitted to the National Assembly during the 2027 regular session. (Source: Yonhap News Agency)