Korea Crypto Tax Delay Pushed as Investors Fear Young Traders' Wealth Ladder

South Korean investors have submitted a petition to delay the implementation of a crypto income tax by two more years, from January 2027. Over 50,000 citizens signed the appeal on the National Assembly's electronic petition portal in just three weeks.

The petition claims that taxing digital assets would not raise significant revenue for the government and could harm young investors who make up half of Korea's crypto traders. It cites an example where Dunamu, operator of exchange Upbit, was hit with approximately 22.6 billion won (~$17 million) in additional taxes following a National Tax Service audit.

The petitioner also estimates that 700 trillion won ($520.5 billion) in crypto-linked funds moved offshore over five years, with 168 trillion won moving last year alone. It argues that taxing now would take away the 'wealth ladder' for young people in the country who rely on these investments.