South Korean Crypto Investors Urge Tax Delay Amid Market Uncertainty

A group of South Korean crypto investors has submitted a petition to postpone the start of cryptocurrency tax collection by two years, from January 1, 2027. The appeal, which gathered over 51,000 signatures in one month, argues that the digital asset market and tax infrastructure are not yet ready for the new tax.

The proposed tax will apply to income from the sale, transfer, and lending of digital assets, with a profit threshold of 2.5 million won (approximately $1,856 USD) per year. The tax rate is 20% on profits above this limit, plus an additional 2% local fee.

According to the petitioners, the new tax will primarily affect newcomers to the market and reduce their ability to accumulate capital. They also warn that traders may move to foreign crypto platforms if the rules are too strict, potentially reducing budget revenues due to market volatility.