CryptoTips Pak

Seoul, South Korea — The debate over South Korea’s crypto taxation has reached a boiling point. A national petition calling for a delay in the crypto gains tax has officially surpassed 50,000 signatures, triggering a mandatory parliamentary review.
Launched on August 21, 2025, on the National Assembly’s petition platform, the petition calls for a two-year postponement of the controversial tax. By September 14, it had collected 51,004 signatures, crossing the legal threshold that requires the Finance Committee to deliberate on the matter by September 20.
Why Investors Are Angry
South Korea has over 14 million crypto users. The petitioner argues that enforcing a tax that generates only 400-600 billion won annually — potentially dropping to 200 billion won in a bear market — is not worth the political cost of alienating young voters.
The timing makes it even more sensitive. The tax is set to take effect on January 1, 2027, with first filings due in May 2028, just one month after the 23rd parliamentary elections.
What The Tax Looks Like
- Start Date: January 1, 2027
- Tax Rate: 20% national + 2% local = 22% total
- Exemption: First 2.5 million won (∼$1,740) of annual gains are tax-free
- Category: Taxed as “other income”
This tax was originally planned for 2022 and has been delayed three times already. The government, led by Finance Minister Koo Yun-cheol, insists this will be the final schedule.
What Happens Next?
The opposition People Power Party (PPP) is supporting the delay. Lawmaker Jung Sung-kook has proposed pushing the date to 2030, while Kim Sang-hoon is seeking a two-year extension to 2029.
Crypto industry groups warn that without features like loss carry-forward and with the OECD’s Crypto-Asset Reporting Framework still not fully operational, the tax could drive users to foreign exchanges.
For now, all eyes are on the Finance Committee. If they accept the petition, South Korea’s crypto tax could face its fourth delay.
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