Crypto▲ Bullish
South Korean Lawmaker Calls for Scrapping 22% Crypto Tax
Park Soo-young calls the 22% levy unfair to 13 million holders and warns it could push capital to foreign exchanges. Loss carryforward rules are missing.
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A South Korean politician is pushing to scrap the planned 22% cryptocurrency income tax before it takes effect in January 2027, arguing the levy unfairly targets roughly 13 million digital asset holders.
Park Soo-young of the People Power Party criticized the tax after comparing it with rules for stock market gains, saying lawmakers eliminated a separate financial investment income tax while keeping a distinct levy on crypto transactions.
Under current law, profits from virtual asset trading and lending above 2.5 million won will face a 20% federal tax plus a 2% municipal surcharge, effective Jan. 1, 2027. The government has held the line despite three earlier delays, and recent fiscal planning documents excluded any mention of pushing the date again.
Park warned the tax could drive capital offshore. He referenced about 124 trillion won that moved to foreign platforms in the first nine months of last year, and cited regulatory data showing substantial outflows from Korean exchanges through 2025.