South Korea plans stablecoin rules as opposition pushes crypto tax repeal

Separately, the National Assembly's finance committee was scheduled to table an opposition bill Wednesday that would abolish the crypto income tax before its Jan. 1, 2027 implementation. The amendment was introduced on March 19 by People Power Party lawmaker Song Eon-seok. It deletes the provision taxing income from transferring or lending digital assets, Edaily reported. Once tabled, the bill is expected to go to the committee's tax subcommittee for detailed consideration.

A separate repeal petition backed by more than 50,000 people is also expected before a petitions subcommittee. Neither subcommittee has been fully constituted, and no review dates have been set.

From Jan. 1, 2027, income from crypto transfers or lending exceeding 2.5 million won (about $1,700) a year would face a 20% tax plus a 2% local income tax. The government and ruling Democratic Party back the tax. The opposition argues it is unfair to tax crypto while most stock investors remain exempt. On May 7, the Finance Ministry said the tax would proceed after repeated delays.

The developments add to the broader regulatory picture for crypto markets, where stablecoin rules and tax treatment remain contested across jurisdictions. No timeline has been set for either the consolidated bill or the tax repeal.