South Korea Considers Scrapping Crypto Tax Amid Growing Investor Support

South Korea's National Assembly Planning and Finance Committee is set to discuss a proposed amendment to the Income Tax Act that could abolish taxation on virtual asset gains. The bill, if advanced, would affect an estimated 13 million cryptocurrency investors in the country.

The proposed legislation, introduced by People Power Party lawmaker Song Eon-seok on March 19, aims to delete existing clauses in the Income Tax Act that impose taxes on income derived from virtual asset transactions. This move could stimulate retail investment and trading activity in one of the world's most active cryptocurrency markets.

Public support for the bill is growing, with a public petition calling for the abolition of virtual asset taxation gathering over 50,000 signatures. The committee meeting will also include key government officials, including Deputy Prime Minister and Finance Minister Koo Yun-cheol, Budget Minister Park Hong-keun, and Bank of Korea Governor Hyun Song Shin.

If the bill passes, it would represent a significant policy shift after years of debate and multiple delays in implementing a taxation framework for virtual assets. The legislative process remains uncertain, with the bill needing to clear several approvals before becoming law.