South Korea's crypto asset tax may face a fourth postponement, with the Blue House leaning toward delaying implementation.

on October 26, according to the Korea Economic Daily, the Blue House is leaning toward postponing the crypto asset income tax originally slated for implementation on January 1, 2027. If ultimately approved, this would mark the fourth delay of the tax policy. However, the Blue House emphasized that discussions are still ongoing and no final decision has been made.

Under current arrangements, South Korea will tax income derived from transferring or lending crypto assets. After applying a basic annual exemption of 2.5 million won, a comprehensive tax rate of 22% will be levied. Reasons under consideration for the postponement by the Blue House include difficulties in accessing overseas transaction information and higher participation rates among younger investors. The South Korean government is concerned that if the United States joins the Crypto-Asset Reporting Framework (CARF) as planned in 2029, implementing the tax earlier could hinder efforts to adequately track the income of Korean residents on U.S.-based exchanges.

Data from South Korean financial regulators indicates that as of the first half of this year, crypto asset users in their 20s and under, combined with those in their 30s, comprised 44.1% of the total user base. Within the ruling party, disagreements persist over another delay, and the relevant bill is expected to be reviewed during next month's tax legislation deliberations.