South Korean crypto investors are pushing for another delay to the country’s planned crypto tax, after a public petition gathered the 50,000 signatures required for review by the National Assembly.
The petition asks lawmakers to postpone the planned Jan. 1, 2027, start date by two more years.
Under the current rules, South Korea plans to tax qualifying digital asset gains at a combined rate of 22%, including a 20% national tax and 2% local income tax.
Investors would receive an annual basic deduction of 2.5 million won, or roughly $1,850, before the tax applies.
However, reaching the 50,000-signature threshold does not automatically delay or cancel the tax. It only requires the National Assembly to refer the petition to the appropriate committee for further review.
Crypto Tax Petition Moves to National Assembly Review
South Korea’s public petition system allows citizens to formally request changes to laws or government policies.
When a petition receives 50,000 verified signatures during the collection period, it becomes eligible for review by a National Assembly committee.
The latest petition argues that South Korea is not yet fully prepared to accurately calculate crypto gains across domestic exchanges, overseas trading platforms, and self-custodied wallets.
The petitioner is asking for a two-year delay so lawmakers and tax authorities can resolve issues related to acquisition costs, transaction histories, reporting requirements, and enforcement.
The petition also argues that introducing the tax in 2027 could place additional pressure on younger investors, particularly those who have experienced losses in the crypto market.
It also raises concerns that higher tax obligations could encourage some investors to move activity toward overseas exchanges.
However, the petition does not provide independent evidence estimating how much tax revenue South Korea could lose or how many investors might move their assets offshore.
Another Crypto Tax Petition Reached the Same Threshold
This is not the first time South Korean investors have used the petition system to challenge the planned crypto tax.
A separate petition calling for the complete abolition of the crypto tax also secured 50,000 signatures in May.
That petition was sent for committee review but had not resulted in any change to the law as of Sept. 14.
This highlights an important point: reaching the signature threshold opens the legislative review process, but it does not guarantee that lawmakers will change the tax rules.
South Korea Crypto Tax Still Set for 2027
Under current National Tax Service guidance, income generated from transferring or lending digital assets will become taxable on Jan. 1, 2027.
South Korea previously postponed the tax through an amendment to the Income Tax Act passed in December 2024.
The tax was originally scheduled to take effect in 2022.
It was then delayed to 2023, later moved to 2025, and eventually postponed again until 2027.
If the latest petition succeeds, it would mark the fourth delay to the implementation of South Korea’s crypto tax.
How South Korea’s Crypto Tax Will Work
Under the planned system, annual gains from digital asset transactions will be subject to a 20% national tax.
A further 2% local income tax will bring the total effective rate to 22%.
Investors will be able to deduct 2.5 million won from their annual crypto gains before tax is calculated.
Taxable income will generally include gains made through selling, exchanging, or lending digital assets.
Eligible transaction expenses and acquisition costs can also be deducted when calculating taxable income.
Crypto gains will be classified as “other income” rather than being included in ordinary comprehensive income.
South Korean residents will report their previous year’s taxable crypto income during the country’s annual tax filing period from May 1 to May 31.
This means crypto income earned during 2027 would first be reported in May 2028.
Crypto-to-Crypto Transactions Could Also Be Taxable
The tax will not only apply when cryptocurrencies are sold for fiat currency.
Crypto-to-crypto trades may also create taxable income.
Authorities can calculate the value of exchanged assets using a reference cryptocurrency and then convert that amount into its corresponding fiat value.
Income earned from lending digital assets will also fall under the planned tax rules.
This gives the tax system a broader scope than simply taxing crypto sales made for South Korean won.
Tax Authorities Preparing Detailed Crypto Rules
South Korean tax officials are continuing preparations for the 2027 rollout despite the new petition.
Lee Hyoung-il, the nominee for deputy prime minister and minister of economy and finance, said that the National Tax Service plans to publish detailed tax standards before the end of 2026.
The goal is to reduce confusion when investors begin filing tax returns.
Lee has defended the plan to classify crypto gains as other income, pointing to compliance costs, the basic deduction, and the use of a single tax rate.
He also argued that taxing digital assets could improve fairness within the tax system.
The government has compared the proposed crypto rules with existing taxation on certain stock transactions, overseas shares, unlisted stocks, and large-shareholder holdings.
Acquisition Cost Rules Already Taking Shape
Some important calculation rules have already been outlined by the National Tax Service.
For digital assets held before the tax takes effect, the acquisition value will generally be determined using the higher of two figures: the investor’s documented purchase price or the market value recorded on Dec. 31, 2026.
For assets acquired after the tax system begins, different rules may apply when an investor cannot prove the actual acquisition cost.
Regulations may allow deemed expenses to be calculated as a percentage of the sale value.
However, the exact eligibility requirements and permitted ratios are still expected to be clarified through additional rules.
Private Wallets and Overseas Exchanges Will Be Included
South Korea’s planned crypto tax is not limited to assets stored on domestic exchanges.
Overseas exchange accounts and self-custodied wallets are also expected to fall within the tax regime.
Authorities have acknowledged that tracking every transaction involving private wallets can be difficult.
To address this challenge, the National Tax Service plans to use commercial blockchain-tracing tools capable of following transfers between wallet addresses.
These tools can help authorities analyze blockchain activity, although they do not automatically reveal the identity of every wallet owner.
Additional data from exchanges, banks, transaction records, and taxpayer disclosures may be needed to connect wallet addresses with individuals.
International Crypto Reporting Could Strengthen Enforcement
South Korea also expects to receive more information through international tax-reporting systems.
Participating countries plan to exchange crypto-related information under the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework.
Information exchanged in 2028 is expected to cover eligible crypto transactions carried out during 2027.
This could give South Korean tax authorities additional information about investors using foreign platforms.
Staking and Airdrop Tax Rules Still Need Clarification
While rules covering crypto transfers and lending are becoming clearer, some areas still require further guidance.
The tax treatment of staking rewards, airdrops, and blockchain forks remains less defined.
The government has said that additional standards will be published before investors need to file their first crypto-related tax returns.
These detailed rules are expected to address areas where the current tax framework remains unclear.
Lawmakers Must Act for the Delay to Happen
The petition itself does not change the law.
For the planned Jan. 1, 2027, start date to be postponed, South Korean lawmakers would need to approve another amendment to the Income Tax Act.
As of Sept. 14, the National Assembly had not announced a committee hearing or vote date for the latest petition.
For now, South Korea’s crypto tax remains scheduled to take effect in 2027, while investors continue pushing lawmakers for more time.
