South Korean Politician Slams Planned 22% Cryptocurrency Tax as Capital Outflows Loom

South Korean politician Park Soo-young is leading the charge against the country's impending 22% cryptocurrency tax, set to take effect on January 1, 2027. According to him, this tax will unfairly impact approximately 13 million digital asset holders in South Korea.

The proposed tax framework categorizes income from virtual asset transactions and lending activities under miscellaneous income, with a 20% federal tax combined with a 2% municipal charge for profits exceeding 2.5 million won.

Park argues that implementing this tax may accelerate capital movement towards international cryptocurrency platforms, potentially diminishing domestic market participation while encouraging offshore asset transfers.