South Korea Crypto Tax Petition Passes 50K

A public petition calling for South Korea to scrap its planned crypto tax has passed the 50,000-signature threshold, forcing the National Assembly to send it to a committee for formal review.

The petition passed the threshold on May 21, just eight days after being posted on May 13. By law, petitions that receive more than 50,000 signatures must be referred to a parliamentary committee for consideration.

50K Signatures Force National Assembly Review

The petition now heads into the National Assembly review process, but the threshold does not automatically change the law. Lawmakers can leave the current framework unchanged, revise it, delay it again or move toward abolition.

The petition only guarantees formal consideration. The speed of the campaign shows that investor opposition remains strong as South Korea moves closer to taxing virtual asset gains.

22% Crypto Tax Still Starts Jan. 1, 2027

South Korea’s crypto tax is still scheduled to begin on Jan. 1, 2027. Under the current framework, annual gains from the transfer or lending of virtual assets above 2.5 million won will be taxed at a combined 22% rate. That includes 20% national income tax and 2% local income tax.

The first full filing cycle is expected in May 2028, covering income earned during the 2027 tax year. South Korea has delayed the levy several times, but the latest government position keeps the 2027 start date in place.

Petitioners Say 2.5M Won Threshold is Unfair

The petition argues that the tax places too heavy a burden on crypto investors. Critics point to the 2.5 million won exemption threshold, the classification of crypto gains as “other income”, and the different treatment of domestic stock investments, which remain effectively tax-free for many retail investors.

Market reports on the petition also said opponents worry the levy could push trading offshore and weaken South Korea’s digital asset market.

Committee Review Does Not Repeal Crypto Tax

The committee review now becomes the next step, but it does not suspend the tax. The National Assembly can consider the petition and decide whether further legislation is needed. Any repeal, delay or rewrite would still require political support and a formal lawmaking process.

For now, South Korea’s crypto tax remains on track. The petition has forced lawmakers to revisit the issue, but taxable gains are still due to begin accruing on Jan. 1, 2027, unless the law changes before then.