Bill to Abolish Crypto Tax Referred to South Korean Parliamentary Committee

A bill from South Korea's opposition bloc to abolish taxes on virtual assets, or cryptocurrencies, has been referred to a National Assembly standing committee, setting up broader debate between ruling and opposition parties over whether the tax should take effect in January 2027.

Edaily reported on July 29 that the National Assembly's Strategy and Finance Committee will hold a plenary meeting at 10 a.m. in Yeouido, Seoul, to formally take up an amendment to the Income Tax Act that would scrap crypto taxation. Attending the meeting are Koo Yun-cheol, deputy prime minister for economic affairs and minister of economy and finance, Park Hong-keun, minister of planning and budget, and Shin Hyun-song, governor of the Bank of Korea.

The amendment was introduced on March 19 by Song Eon-seok of the People Power Party, who was serving as floor leader at the time. The bill's core provision deletes the clause on income from virtual assets under Article 21(1)27 of the current Income Tax Act, removing the legal basis for taxing crypto income.

The meeting is the Strategy and Finance Committee's first plenary session since the second-half committee lineup for the 22nd National Assembly was completed on July 23. The committee will also receive work reports from the Ministry of Economy and Finance, the Ministry of Planning and Budget, and the Bank of Korea, followed by questions on current issues.

The proposed amendment will next be sent to the committee's tax subcommittee for detailed review. A petition calling for the abolition of crypto taxation that drew support from more than 50,000 people will also be discussed separately by the committee's petition review subcommittee.