Petition with 52,000 signatures triggers crypto tax review in South Korea

A petition calling for the abolition of South Korea's planned tax on cryptocurrency investment gains has surpassed 50,000 signatures, triggering a mandatory review by the National Assembly's Finance and Economic Planning Committee. The petition, which now has more than 52,000 signatures, argues the tax is unfair and could damage the country's standing as a major digital asset hub.

The tax, currently scheduled to take effect in January 2027, would impose a 22 percent levy on annual crypto gains exceeding 2.5 million won (approximately $1,650 to $2,200). Critics highlight a significant disparity with the treatment of stock market investors, who face capital gains taxes only on profits above 50 million won. The petition's authors contend this discrepancy places a disproportionate burden on crypto investors and fails to account for the market's volatility.

In a statement, the petitioners warned that enforcing the tax to secure short-term revenue could lead to long-term economic damage, including a contraction of the industry and an outflow of capital and talent abroad. They argue the government is moving to tax virtual assets without first establishing sufficient investor...