South Korean investors petition for two-year crypto tax postponement

South Korean investors have gathered the 50,000 signatures required to trigger a National Assembly review of a petition calling for a two‑year postponement of the country’s planned crypto tax.

Background on the upcoming tax

South Korea intends to tax qualifying crypto gains at a combined 22% rate (20% national plus 2% local) beginning on 1 January 2027. The tax will apply to annual digital‑asset gains above 2.5 million won (about $1,850) and will cover income from transfers, lending, staking and other activities.

Petition details and demands

The petition, now eligible for committee review, asks lawmakers to shift the start date to 1 January 2029. Its authors argue that the country lacks adequate systems for calculating gains across domestic exchanges, overseas platforms and private wallets, and that many investors are currently facing losses.

Legislative process

Reaching the 50,000‑signature threshold obliges the National Assembly to refer the petition to a standing committee, but it does not automatically amend the Income Tax Act or halt the tax authority’s preparation work. A separate petition calling for complete abolition of the crypto tax also reached the threshold earlier this year, yet no legislative change has resulted.

Government preparation

Finance officials plan to issue detailed tax standards before the end of 2026. For assets held before the tax takes effect, the acquisition value will generally be the higher of the documented purchase price or the market value on 31 December 2026. The National Tax Service is also developing blockchain‑tracing tools to monitor private‑wallet and overseas‑exchange activity.

Potential impact of a delay

• Provides additional time for the tax authority to finalize calculation methods.
• May reduce the risk of investors moving assets to offshore exchanges.
• Could affect projected tax revenue during periods of weak trading activity.

Any postponement would require a further amendment to the Income Tax Act, which has not yet been scheduled for a committee hearing or vote.