Over 50,000 South Koreans Sign Petition to Block 2027 Crypto Tax

A petition for the abolition of South Korea’s planned 22% cryptocurrency tax has surpassed 50,000 signatures. 

It now heads to the National Assembly’s Finance and Economic Planning Committee for review. Lodged on May 13, the petition crossed the threshold on May 21. It now holds 53,359 signatures.

Crypto Tax Set to Take Effect in 2027

South Korea’s 20% crypto tax, which rises to 22% with local surcharges, takes effect January 1, 2027. The law applies to gains exceeding 2.5 million won.

The petitioner argues it’s unfair that South Korea abolished the Financial Investment Income Tax (which would have taxed stock gains) but is still moving forward with taxing crypto gains. 

They claim this creates inequality among investors, harms young people trying to build wealth, ignores the current crypto market downturn, and lacks adequate investor protection infrastructure.

“Due to soaring real estate prices, asset formation for young people is becoming increasingly difficult. In a reality where home purchase is impossible without accumulated assets, virtual assets are perceived by some young people as effectively a last investment opportunity. If an additional tax burden is added in this situation, asset-building opportunities for young people may be further reduce,” the petition reads.

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South Korea has delayed implementing crypto taxation three times since its original 2022 start date. This petition is part of the ongoing public pressure to scrap it entirely rather than just delay it again.

Meanwhile, in March, People Power Party floor leader Song Eon-seok filed a bill to eliminate all provisions related to digital asset taxation included in the current Income Tax Act.

Nonetheless, the Ministry of Economy and Finance publicly reaffirmed this month that the tax will proceed in January 2027. That’s the wall this petition is running into, and it landed just days before the petition was filed.

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The post Over 50,000 South Koreans Sign Petition to Block 2027 Crypto Tax appeared first on BeInCrypto.