South Korea’s long-delayed cryptocurrency tax framework may face renewed scrutiny after a public petition calling for its abolition gathered enough support to trigger formal review in the National Assembly.
The petition, which opposes the government’s planned taxation of digital assets, has now received more than 53,000 signatures on the National Assembly’s public petition platform — exceeding the threshold required for lawmakers to officially examine the proposal.
As a result, the matter will now move to the Finance, Economy, and Planning Committee, which will determine whether the issue should be escalated for broader parliamentary discussion.
Growing Opposition To Crypto Taxation
South Korea originally planned to introduce crypto taxation through amendments to the Income Tax Act by January 2022. However, the implementation has already been delayed three separate times amid political debate, industry concerns, and shifting market conditions.
Supporters of the latest petition argue that imposing separate taxes on digital assets no longer makes sense, especially after the government recently scrapped the financial investment income tax in an effort to support capital market growth.
The petition also claims that current crypto policies place too much emphasis on regulation and tax collection while failing to prioritize innovation, competitiveness, and South Korea’s position within the global digital asset industry.
According to the request, forcing taxation too early could create larger long-term problems, including industry contraction, reduced innovation, and the migration of capital and talent to more crypto-friendly jurisdictions.
The petition further criticizes the government for attempting to introduce taxation before establishing stronger investor protections and market safeguards, such as:
- Short-selling regulations
- Listing review systems
- Investor protection funds
- Monitoring systems for unfair trading practices
The petitioner argues that the crypto taxation framework requires a complete reassessment rather than another temporary delay or partial revision.
Officials Still Preparing For 2027 Launch
Despite growing public opposition, previous reports suggest the likelihood of fully abolishing the tax framework remains relatively low.
Parliamentary petitions in South Korea rarely lead directly to legislative changes, and government officials continue signaling support for implementing crypto taxation beginning in 2027.
Last month, the ruling People Power Party (PPP) introduced legislation seeking to amend the Income Tax Act and completely remove provisions related to digital asset taxation.
The proposal, introduced by PPP floor leader Song Eun-seok, argues that applying separate taxation rules to crypto assets raises concerns about fairness and consistency within the broader tax system.
The bill also referenced guidance from US financial regulators, which classify many digital assets as commodities rather than securities.
Meanwhile, South Korea’s National Tax Service (NTS) continues preparing infrastructure for eventual implementation of the crypto tax framework.
In April, Park Jeong-yeol, Director of the Individual Taxation Bureau at the NTS, confirmed that the agency has begun collecting exchange data and building systems necessary for comprehensive digital asset taxation.
The NTS is also reportedly accelerating development of an AI-powered monitoring system designed to track crypto investment gains and improve tax enforcement capabilities.
According to officials, the system is expected to become fully operational before the end of the year as authorities continue laying the groundwork for future crypto taxation.
