South Korea’s push to delay its upcoming cryptocurrency tax has cleared a key procedural hurdle after a public petition surpassed 50,000 signatures, triggering formal review by the National Assembly. Under the country’s electronic petition system, proposals that reach the threshold are referred to the relevant standing committee, although referral does not amend the Income Tax Act or guarantee a vote.
The petition asks lawmakers to postpone the scheduled Jan. 1, 2027 implementation date by two years. South Korea currently plans to tax annual digital asset gains above 2.5 million won at a combined rate of 22%—a 20% national tax plus a 2% local income tax. The rules cover income from transferring or lending digital assets, including crypto-to-crypto exchanges and activity on foreign platforms and private wallets.
Petitioners argue that the country lacks adequate systems for calculating gains across domestic exchanges, overseas platforms and self-custodied wallets. The submission claims that "most crypto investors are sitting on heavy losses" and warns that immediate taxation could pressure younger investors. It also raises concerns about possible migration to offshore exchanges and limited tax revenue during weak trading activity. A separate petition seeking complete abolition of the crypto tax passed the same threshold in May but had not changed the law as of Sept. 14.
The 2027 date is already the result of multiple delays. Parliament approved the latest two-year postponement in December 2024, moving an original 2022 start date to 2023, then 2025 and finally 2027. If the new petition succeeds, it would become the fourth postponement.
Tax officials are continuing preparations. Lee Hyoung-il, nominee for deputy prime minister and minister of economy and finance, said the National Tax Service plans to issue detailed standards before the end of 2026. Authorities have also confirmed plans to use blockchain wallet-tracing software and expect international reporting under the OECD’s Crypto-Asset Reporting Framework. For assets held before implementation, acquisition value will generally be the higher of the documented purchase price or the market value on Dec. 31, 2026. Income earned during 2027 would produce the first tax returns in May 2028.
