South Korea’s cryptocurrency tax debate has intensified as the opposition People Power Party (PPP) prepares another bill to postpone the implementation date, while the National Tax Service separately warns of phishing emails exploiting taxpayer confusion.
PPP lawmaker Kim Sang-hoon plans to introduce a partial amendment to the Income Tax Act this month that would move the start of virtual asset investment income taxation from January 1, 2029 to January 1, 2031. The bill is currently under review by the National Assembly Secretariat’s legislative office. It follows a separate proposal by PPP lawmaker Jeong Seong-guk on August 10 that calls for a delay until January 2030. The competing proposals reveal internal party disagreement over timing even as the ruling Democratic Party and the government maintain their plan to begin taxation in January 2029.
Under the planned regime, crypto gains above 2.5 million won (about $1,800) per year would be taxed at 20% plus local taxes. The tax was originally scheduled for 2022 but has faced repeated postponements. South Korea remains one of the world’s largest digital asset markets, and the continued uncertainty affects investors, exchanges, and institutional participants.
Meanwhile, the National Tax Service (NTS) has issued a public alert about malicious emails posing as official guidance on virtual asset tax reporting. The fraudulent messages use subject lines translating to “Notice of Pre-Explanation of Virtual Asset Taxation” and attempt to trick recipients into clicking harmful links or opening attachments. The NTS says some cases have already led to personal data leaks. It emphasized that official communications would never request sensitive information by email or ask users to verify details through external links.
As lawmakers prepare for a potential committee clash in the National Assembly, the combined developments highlight both the unresolved political debate over crypto taxation in South Korea and the security risks emerging during the transition period.
