South Korea's ruling party formally asks the government to delay the 22% crypto tax a fourth time, and to pass the Digital Asset Basic Act first

South Korea's crypto tax looks set for a fourth postponement. Kim Min-seok, leader of the ruling Democratic Party, formally asked the government to delay the levy at the party's supreme council meeting at the National Assembly on Wednesday, Korean time, SBS News and The Block report. He said the decision followed consultations with the government, the party's finance committee members and crypto businesses, and that the Digital Asset Basic Act, the country's planned framework law for crypto, should be enacted first so that companies and investors have time to adjust.

The tax, written into law in 2020, would charge 22% including local tax on annual gains above a 2.5 million won deduction from transferring or lending crypto assets. Its start has already been pushed back three times, most recently to January 1, 2027. The party gave no new date; Kim said it would "clearly establish a grace period and thoroughly prepare prerequisite tasks," naming the use of overseas transaction information, system verification and taxpayer guidance, according to SBS. Party members of the Assembly's finance committee had mainly discussed a two-year extension on Tuesday.

SBS reports the party was split, with some members arguing the tax should start as planned to protect policy credibility, and that a final decision will come through further high-level talks between the party and the government. The Block notes that the presidential office had earlier been reported to be weighing a delay to 2029, which would line up with the US timetable for joining the OECD's crypto-asset reporting framework.