South Korea Holds Up Tax Imposition

• 20% tax on crypto profit delayed for 3 more years.
• The tax implication scheduled for 2022 has been postponed to 2025.

On Thursday, fiscal chief Ko Kwang-Hyo of the Ministry of Economy and Finance stated South Korea’s planned tax on Digital assets has been postponed for another two years and the tax levy on crypto assets will begin in 2023.

A 20% tax on crypto-asset profits was supposed to go into effect on Jan 1, 2023, but Ko’s announcement moves it back to 2025.

South Korea’s Stand

South Korea had planned to impose a 20% tax on cryptocurrency beginning in 2022, however, the plan was pushed back to 2023 because of investor opposition. The implementation of a 20% tax on capital gains over 50 million Korean won US$38,624.95 from stock trading, which was scheduled to begin in 2023, has been postponed until 2025.

President Yoon Suk-yeol earlier stated that the crypto tax shouldn’t be implemented until proper market infrastructure is in place. Now the economic strategy roadmap included Ko’s announcement. The plan stated that the future “Digital Assets Basic Act” will control cryptocurrency development and listing.

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