South Korea's Crypto Tax Plan Sparks Youth Backlash

The South Korean government's plan to start taxing digital assets in January is facing growing opposition from retail investors, who claim the policy is unfair.

The proposed tax would apply a 22 percent rate to annual gains from trading or lending virtual assets exceeding 2.5 million won, with taxpayers required to file their first returns in May 2028, just one month after the country's parliamentary elections.

Young crypto investors are particularly vocal in their opposition, citing concerns that the tax could further erode support for the ruling Democratic Party of Korea among young voters.

A petition calling for a two-year delay in implementation has gathered over 10,000 signatures, with estimates suggesting annual tax revenues from digital assets could fall to 200 billion won in a prolonged market downturn.