Petition to Scrap South Korea’s Crypto Tax Heads to Parliament as 2027 Levy Nears

A public petition calling for the repeal of taxation on virtual assets, or cryptocurrencies, is set to be placed before a National Assembly standing committee soon. With the tax scheduled to take effect in January 2027, discussions in parliament and the government are poised to gather pace.

Edaily reported on June 21 that the National Assembly’s Strategy and Finance Committee plans to place the petition, titled “Petition on the Abolition of Virtual Asset Taxation,” on the agenda at its first full session after the committee is formed.

The petition was launched on May 13 and surpassed the 50,000-signature threshold required for parliamentary consideration eight days later, on May 21. Final support totaled 58,571 signatures.

Under the National Assembly Act, a public consent petition must be placed on the agenda at the first committee meeting held after 30 days have passed from its referral to the relevant standing committee. The petition was referred to the Strategy and Finance Committee on May 21, and the 30-day period expired on June 21. As a result, it is highly likely to be discussed at the committee’s first full meeting after its formation.

Under the current Income Tax Act, income from the transfer or lending of virtual assets will be taxed as miscellaneous income starting Jan. 1, 2027. Annual income above 2.5 million won ($1,800) will be subject to a 22% tax rate, made up of a 20% miscellaneous income tax and a 2% local income tax.

The government and ruling party have so far maintained their position that the tax will be implemented as scheduled. The People Power Party, meanwhile, has proposed an amendment to the Income Tax Act calling for the tax to be abolished. Key issues include parity with stock investment, inadequate tax infrastructure and the risk of harming the market.

The upcoming policy schedule could also affect the debate. Prime minister nominee Han Seong-suk is scheduled to face a confirmation hearing on June 25 and June 26, and the Ministry of Economy and Finance is due to release next year’s tax law revision bill next month. That process is expected to flesh out the government’s final position on the virtual-asset tax set to begin in January 2027.