South Korea Crypto Tax Petition Hits 58K, Enters Review

A public petition calling for abolition of South Korea's 20% capital gains tax on crypto trading has collected more than 58,000 signatures and moved into legislative review, according to the National Assembly petitions page. The petition, posted on the assembly's official platform, targets the tax on gains above 2.5 million won. Under South Korea's petition rules, any request clearing 50,000 signatures within 30 days must be examined by a standing committee. The count passed that threshold, triggering the referral.

Yonhap News Agency covered the milestone this week. The agency's report did not include a statement from any lawmaker or the finance ministry on whether the government would support a repeal. The finance ministry has previously defended the tax, arguing it aligns crypto trading with other investment income.

The legislative review carries no fixed timeline. The committee that receives the petition can hold hearings, request government briefings, or simply note the submission without advancing a repeal bill. No date for a committee session has been published. The parliament's petitions page lists the item as "in progress" without a next-step date.

The push comes as South Korea's crypto market has grown. Daily trading volumes on local exchanges sometimes exceed those on the country's main stock index. The tax has drawn criticism from retail traders and some lawmakers who say it pushes trading activity offshore. Attempts to delay the tax's 2022 implementation failed, though the levy itself was pushed back to 2025. The current petition represents the first formal legislative challenge since the tax took effect.

No market reaction data is available because the source material contains no pricing or volume information. The next concrete marker is whether the standing committee schedules a hearing or lets the petition expire without action. A repeal would remove the 20% withholding on gains above 2.5 million won for individual traders on Korean exchanges. Without repeal, the tax remains in place.

Coincu has separately covered South Korea ending mandatory reporting for transfers above 10 million won, as well as the country's review of Polymarket over gambling concerns. Neither story ties directly to this petition. The evidence rests on the petition page, the assembly listing, and Yonhap's report.