대한민국 Government Policy Update — Nov 5, 2026
The South Korean government has pushed back the crypto tax implementation date to 2029, introduced a three-year loss carryforward system, and overhauled digital asset tax rationalization. Meanwhile, a revised enforcement decree of the Framework Act on Administrative Regulations passed the State Council, making impact analysis and reviews mandatory even when easing life and safety regulations.
South Korean Government Policy Update — Nov 5, 2026
Major Policy and Legislative Changes
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Crypto Tax Postponed and Loss Carryforward Introduced (Ministry of Finance and Economy) The South Korean government has decided to delay the implementation of income tax on virtual assets by two more years, moving the target date from 2027 to 2029. This marks the fourth delay as part of a "digital asset tax rationalization" initiative aimed at investor protection and market stabilization. Notably, along with adjustments to the exemption threshold, a new system will be introduced allowing losses from virtual asset trades to be carried forward and deducted for three years. Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il announced plans to form a public-private working group for this purpose.

Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il announcing the crypto tax deferral and tax reform plans at the Seoul Government Complex -
'Fabricated Prosecution Special Counsel Act' Submitted to Plenary Session The so-called "Fabricated Prosecution Special Counsel Act," pushed by the Democratic Party of Korea, was submitted to the National Assembly plenary session on November 5, just one day after passing the Legislation and Judiciary Committee. The People Power Party is strongly resisting by conducting a filibuster (unlimited debate), with lawmaker Park Hyung-soo stepping up as the first speaker.

Ruling and opposition lawmakers in fierce confrontation over the special counsel act in the National Assembly plenary chamber
Regulatory Improvements and Administrative Changes
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'Impact Analysis and Review' Made Mandatory for Easing Life and Safety Regulations (Office for Government Policy Coordination) During a State Council meeting on November 3, the government deliberated and voted on a partial amendment to the enforcement decree of the Framework Act on Administrative Regulations. Moving forward, repealing or easing regulations directly tied to public life and safety—such as construction, transportation, industrial accidents, and food—will strictly require conducting a "regulatory impact analysis" and undergoing review by the "Regulatory Rationalization Committee." Lim Ki-keun, Minister for Government Policy Coordination, stated that this amendment establishes a framework to improve unreasonable existing regulations while strengthening safety management.

The State Council deliberating on the reorganization plan for the regulatory management framework -
Expansion of New Industry Regulatory Sandbox Period and Enhanced Civil Servant Rewards The regulatory sandbox period, which temporarily exempts regulations in new industry sectors, will be extended to a maximum of 90 days. Furthermore, special performance bonuses for public officials who contribute to regulatory improvements will be expanded to the top 5% of work performance, expected to boost momentum for regulatory innovation.
Policy Impact and Future Schedule
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Digital Asset Market Stabilization and Tax System Alignment The postponement of crypto taxation and the introduction of loss carryforward rules are intended to reduce investor burden and encourage market participation. The Ministry of Finance and Economy plans to finalize specific tax reform proposals through the public-private working group and prepare systems for the 2029 tax implementation.
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Strengthened Ex-Post Evaluation in Regulatory Management Framework With ex-post evaluations for life and safety regulations becoming more specific beyond simple relaxation, government ministries must comply with stricter impact analysis procedures to preemptively block potential side effects when easing rules. This is interpreted as an effort to control the pace of regulatory reform while minimizing social costs.
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Continuing Legislative Conflict Over Special Counsel Act Processing The submission of the "Fabricated Prosecution Special Counsel Act" to the plenary session has intensified confrontation between the ruling and opposition parties. Procedural delays such as filibusters are expected, and considerable political turbulence is likely inevitable before the final processing of the bill.
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