South Korean Investors Demand Two-Year Delay to 22% Crypto Tax

TL;DR:

• The citizen initiative exceeded the 50,000 signatures required on the South Korean National Assembly’s platform.
• The scheduled tax framework establishes a combined 22% rate on net annual gains exceeding 2.5 million won.
• The regulation is currently set to take effect on January 1, 2027, following three prior legislative extensions.

A public petition registered in South Korea reached the statutory threshold of 50,000 signatures this Monday, September 14, requesting a two-year delay for the 22% crypto tax, pushing its potential implementation to January 2029.

Upon crossing the threshold, the document was automatically referred to the South Korean parliament’s Strategy and Finance Committee. An industry source noted that this legislative referral does not immediately halt the scheduled date of January 1, 2027, as the technical committee must first determine whether sufficient formal merits exist to initiate a plenary debate for statutory reform.

The approved tax regime stipulates a 20% national levy plus a 2% local surtax, consolidating a 22% tax liability categorized under “other income.” The annual tax-free allowance is set at 2.5 million won (approximately $1,860 at current exchange rates), requiring reporting on any net gains above that threshold. Under the current timeline, initial tax filings and payments would take place in May 2028 for the 2027 tax year.

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