South Korea Crypto Tax Faces Fresh Repeal Push in Parliament

Key Insights

• South Korea crypto tax repeal petition passed 50,000 signatures.
• The 22% crypto tax targets annual gains above 2.5 million won.
• Lawmakers must review the repeal push before the January 2027 launch.

The South Korea crypto tax plans face fresh political pressure after a public petition surpassed 50,000 signatures. The threshold now sends the issue to the National Assembly for formal review.

The planned rule would tax annual crypto gains above 2.5 million won, or about $1,650 to $1,800, at a combined 22% rate. That includes a 20% income tax and a 2% local tax. The measure is scheduled to begin on January 1, 2027, after several previous delays.

South Korea Crypto Tax Repeal Push Reaches Parliament

The petition against the South Korean crypto tax gained momentum after investors argued that the rule treats digital asset traders unfairly. Under National Assembly rules, petitions that pass 50,000 signatures move to a relevant committee for review.

The petition reached that level about eight days after submission, according to reports tracking the Assembly platform.

The latest pressure also follows a legislative push from People Power Party lawmaker Song Eon-seok. He introduced an amendment seeking to remove digital asset taxation provisions from South Korea’s Income Tax Act.

The proposal aims to stop the 2027 launch before investors face new reporting and payment duties.

The South Korean crypto tax has already faced repeated delays. However, no implementation had been delayed before because of worries about exchange systems and reporting deficiencies, and investor protection. Those same issues now sit at the center of the repeal debate.

Why Crypto Investors Oppose The 22% Crypto Tax?

Crypto investors argue that the 22% crypto tax creates an unequal burden. The petition says crypto gains would face tax, while many retail stock and bond gains remain exempt.

That argument has become central to the political push against the plan. The threshold is another point of dispute.

The planned rule applies after annual crypto gains exceed 2.5 million won. Critics say that the level is too low for an asset class known for sharp price swings and irregular gains.

Another uncertainty for investors is the clarity of the tax rules in relation to staking, lending, offshore exchange activity, and decentralized finance income.

Foreign platforms are another option that certain traders might choose to utilize, and these could make it hard to track costs for tax authorities. This could lead to disagreements about acquisition costs and gains.

The petition also raises investor protection concerns. It argues that South Korea’s crypto market still faces fraud risks, weak listing standards, and uneven safeguards. Supporters say taxation should follow stricter rules, not arrive before them.

South Korea Crypto Tax Debate Tests Market Policy

The South Korea crypto tax debate now creates a difficult policy choice. The government has prepared for implementation, while lawmakers face rising pressure from retail investors.

Earlier reports said the National Tax Service was working with major local exchanges on compliance guidance before the 2027 start date.

South Korea remains one of Asia’s most active digital asset markets. Local traders often drive heavy demand for Bitcoin, Ethereum, altcoins, and stablecoins. Supporters of repeal warn that strict taxation could push capital, users, and startups toward friendlier markets.

But tax authorities have persisted in their arguments in favour of a proper system of taxation of crypto income. They argue that digital asset gains should not remain outside the tax framework forever.

The current schedule still points to January 2027 unless lawmakers amend the law. The issue also comes as South Korea expands digital asset oversight.

Authorities have moved on to overseas crypto transfer rules and tokenized securities regulation. Those steps show that Seoul still wants tighter market control, even as investors challenge the crypto tax rollout.

For now, the petition has turned public anger into a formal parliamentary issue. The next stage depends on how the committee handles the repeal request, Song Eon-seok’s amendment, and the government’s existing 2027 tax timetable.

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