South Koreans Petition for Fourth Crypto Tax Delay

South Korean citizens are pushing for a fourth extension of the country's crypto tax regime starting in 2027. A petition on the National Assembly's electronic portal has gathered over 50,000 signatures, exceeding the required threshold for parliamentary review. However, the government levy is still set to be imposed on January 1, 2027.

The proposed crypto income tax would treat profits from selling, transferring, or lending digital assets as miscellaneous income and charge a 22% tax rate. This includes a 20% national plus a 2% local surcharge on annual gains above a 2.5 million won ($1,860) deduction.

Opponents of the tax argue that it would take away a 'wealth ladder' for young people in South Korea who make up about half of the country's crypto investors. The petition claims that taxing now would not raise much revenue, citing an example where Upbit operator Dunamu was hit with approximately 22.6 billion won (~$17 million) in additional taxes following a National Tax Service audit.

The Digital Asset eXchange Association (DAXA) has told lawmakers that exchanges lack a standardized data network with regulators and need more time to build and test it. Officials like Lee Hyoung-il, the nominee for deputy prime minister and finance minister, are still pushing for the tax, calling it 'desirable' to implement as scheduled.