South Korean lawmakers will review a petition demanding the repeal of the country’s upcoming cryptocurrency tax plan after it gained more than 50,000 signatures, the threshold required for parliamentary consideration. The petition, initiated by crypto investors and supported by some policymakers, challenges the government’s intention to impose an income tax on virtual asset profits starting in 2027.
The contested tax would apply a rate of up to 22% on crypto gains exceeding 2.5 million won annually, under the Income Tax Act initially proposed for implementation in 2022 but postponed multiple times. With over 53,000 people signing the petition within days, the National Assembly’s Finance, Economy, and Planning Committee will assess whether it should be forwarded to the full legislative body.
Critics in the petition argue that the tax policy contradicts recent moves to abolish financial investment income tax, which aimed to boost South Korea’s capital markets. It warns that prioritizing tax revenue over industrial growth may hamper the domestic crypto industry, risk capital flight, and diminish talent retention. The petition calls for a fundamental reassessment of the crypto tax system rather than a simple delay or minor revision.
The petition also highlights concerns about the government’s readiness, citing incomplete regulatory frameworks such as short-selling rules, exchange listing approvals, investor protection mechanisms, and monitoring systems against unfair crypto trading. These gaps fuel skepticism over imposing the tax before adequate protections and oversight are established.
Despite the growing opposition, the likelihood of scrapping or further postponing the tax remains uncertain, as South Korean authorities appear committed to the 2027 timeline. Parliamentary petitions seldom lead to immediate legislative reversals, but the volume of dissent signals significant public unease over the current regulatory approach to virtual assets.