South Korea’s Crypto Tax Bill Repealed by Ruling Party” but that’s 85 characters. Wait, the user said less than 100, so maybe shorten further. “People Power Cancels Crypto Tax Bill

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South Korea’s People Power Party proposes bill to abolish 22% crypto tax

Several South Korean politicians are opposing the government’s proposal to tax cryptocurrencies at a rate of 22%.

Summary

  • People Power Party has introduced a bill to amend the Income Tax Act and scrap the planned crypto gains tax ahead of its 2027 rollout.
  • The proposed 22% tax on crypto profits above 2.5 million won has already been delayed three times amid continued political disagreement and industry pushback.

A new bill proposed by South Korea’s People Power Party aims to eliminate taxes on profits earned from cryptocurrencies. The bill, introduced on Thursday, would change the country’s Income Tax Act to remove the planned tax on crypto gains, according to reports.

First proposed in 2020 by South Korea’s Ministry of Economy and Finance, the tax plan would apply a 20% national and 2% local tax to profits from cryptocurrency exceeding 2.5 million won. The proposal has faced significant political opposition and has been delayed three times since it was first introduced.

Originally planned for 2022, the change will now take effect on January 1, 2027.

Taxing crypto would be unfair

As a researcher, I’ve been following the debate around this proposal, and a key concern raised by opponents centers on fairness. They argue that taxing crypto investors while other investments, like stocks – which previously had income tax repealed – remain untaxed, creates an inequitable situation. Essentially, the criticism boils down to the idea that it’s unfair to single out crypto investors for taxation.

Many of the country’s leading exchanges have stated that the proposed tax rules could discourage trading and lead to fewer people participating in the market.

The proposed bill points to recent statements from the U.S. Securities and Exchange Commission, which suggest many cryptocurrencies aren’t actually considered securities. Based on this, the bill argues that crypto shouldn’t be regulated in the same way as stocks and bonds.

Kim Han-gyu, a key leader in the Democratic Party, stated that the party will talk about the bill, but he also indicated they haven’t given it much thought yet.

South Korea, a major global cryptocurrency market, is rethinking how it taxes digital currencies.

Last year, the Ministry of Small and Medium Enterprises and Startups suggested a change that would let crypto companies register as venture businesses, making them eligible for tax breaks and other advantages.

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2026-03-19 15:27