Calls Grow Within South Korea’s Democratic Party to Delay Crypto Tax; Park Min-kyu Warns of Confusion

Calls are growing within South Korea’s ruling Democratic Party to postpone taxation on virtual assets, or cryptocurrencies, scheduled to take effect in January 2027.

Park Min-kyu, a Democratic Party lawmaker on the National Assembly’s Political Affairs Committee, wrote in a Facebook post on Sept. 23 that it is premature to begin taxation in January 2027 when even a basic law on digital assets has yet to be enacted. He said clear tax standards and guidelines have not been prepared, and that key criteria needed for taxation, including how to calculate acquisition costs, remain unclear.

With the tax set to take effect soon, exchanges and users alike still do not know how to prepare, Park said. He added that the rollout could cause significant confusion in the market. He also said users of domestic exchanges could be put at a disadvantage if South Korea presses ahead before the Crypto-Asset Reporting Framework, or CARF, begins operating in earnest.

Park also raised concerns about parity with other assets such as stocks. Taxing only digital assets is not desirable when the financial investment income tax has been abolished, he wrote. For now, he said, the priority should be to build an institutional foundation to support and grow the digital-asset market rather than push ahead with taxation.

He added that the government should postpone digital-asset taxation instead of forcing through a system that is not ready and should focus on enacting the Basic Digital Asset Act.

Min Byung-duk, another Democratic Party lawmaker, also called for a delay on Sept. 22. In a Facebook post that day, Min said he agrees with the principle that income should be taxed, but that the foundation for collecting taxes fairly must come first.

Opposition says delay and repeal are party policy

The opposition People Power Party has already adopted delaying or scrapping crypto taxation as official party policy. Floor Leader Jung Jeom-sik said at a National Assembly forum on Sept. 21 that many young people are participating in the digital-asset market at a time when jobs are scarce and buying a home is difficult on wage income alone. If the government rushes into taxation without adequate preparation while ignoring those realities, the resulting confusion and burden will ultimately fall on young investors, he said.

People Power Party lawmaker Kim Jae-seop also introduced a bill the same day to amend the Income Tax Act, pushing back the start of crypto taxation by three years from next year to 2030. The measure is intended to give authorities time to overhaul related systems, including income calculation and filing support.

The government, however, has maintained that it will move ahead with full-scale taxation from next year as planned. To prepare, the National Tax Service launched a dedicated Digital Asset Division in July and plans to release tax guidelines as early as next month.

Lee Hyoung-il, nominee for deputy prime minister and finance minister, recently said in a written response submitted to the National Assembly that it would be appropriate to begin taxation in 2027 in line with the basic tax principle of taxing income where it arises.