The South Korean government and ruling right-wing People Power Party are considering delaying the taxation of cryptocurrency investment gains from January 2025 to January 1, 2028. The Ministry of Finance has not made a final decision and expects to release next year's tax law amendments later. Initially set for January 2022, the 20% crypto gains tax has faced heavy backlash and has been postponed twice. The proposal to delay the tax comes amid concerns that taxing such a high-risk asset could drive investors away. Approximately 6.5 million South Koreans, or 12.5% of the population, used cryptocurrency by the end of last year.
