53,359 Petition to Block South Korea’s 22% Crypto Tax

A petition to abolish South Korea’s planned 22% cryptocurrency tax has reached 53,359 signatures and was forwarded to the National Assembly’s Finance and Economic Planning Committee. The petition was filed on May 13 and crossed the 50,000-signature threshold on May 21.

The measure was written into law as a 20% levy that rises to 22% when local surcharges are included. It is scheduled to take effect on Jan. 1, 2027, and applies to capital gains on virtual assets that exceed 2.5 million won.

Organizers argue the tax is unfair because the government abolished a Financial Investment Income Tax that would have applied to stock gains. They say the crypto levy creates unequal treatment between investors and harms young people trying to build assets. The petition reads: “Due to soaring real estate prices, asset formation for young people is becoming increasingly difficult. In a reality where home purchase is impossible without accumulated assets, virtual assets are perceived by some young people as effectively a last investment opportunity. If an additional tax burden is added in this situation, asset-building opportunities for young people may be further reduced.”

Lawmakers have delayed implementation of crypto taxation three times since it was first due to start in 2022. In March, People Power Party floor leader Song Eon-seok introduced a bill to remove all digital asset tax provisions from the Income Tax Act. In May, the Ministry of Economy and Finance reaffirmed that the tax will begin on Jan. 1, 2027.

With the petition now with the Finance and Economic Planning Committee, lawmakers will review public submissions as part of the parliamentary process. The committee can recommend legislative changes, hold hearings or take other actions based on its review.

Proponents say the tax will bring digital assets into the formal tax system and raise revenue. Opponents point to a downturn in the crypto market and limited investor protections as reasons to delay or repeal the tax.