South Korean Petition to Scrap Crypto Tax Tops 50,000 Signatures, Triggering Parliamentary Review
South Korea had planned to impose a 20% tax, plus local income tax, on annual crypto-asset income exceeding 2.5 million won from January 1, 2025. The threshold was 20 times lower than the 50 million won tax-free allowance for financial investment income from stocks, drawing attention from about 13 million crypto investors.
A National Consent Petition seeking to abolish crypto-asset taxation surpassed the 50,000-signature threshold in July 2024. Under South Korean National Assembly rules, the petition will be formally reviewed by the Strategy and Finance Committee, which will reconsider the 2.5 million won exemption, the disparity with stock taxation and whether the system should take effect as scheduled.
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The history behind this eventSouth Korean Opposition Party Proposes Scrapping Planned 22% Crypto Tax
South Korea had planned to impose a 20% income tax from Jan. 1, 2027, on annual virtual-asset gains exceeding 2.5 million won. A 2% local tax would bring the effective rate to 22%. The measure has been postponed several times, amid persistent disputes over fairness, the deduction threshold and authorities' ability to obtain trading data.
The main opposition People Power Party, or PPP, recently proposed an amendment to the Income Tax Act that would scrap the crypto gains tax scheduled for 2027 rather than delay it again. A related petition to abolish the tax has reached the 50,000-signature threshold and will be reviewed by South Korea's National Assembly. The proposal could also create a policy conflict with the National Tax Service, which has already invested in building a taxation system.
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