South Korea's Petition To Block Crypto Tax Passes Parliamentary Threshold

The petition, posted on the National Assembly's public petition board on 13 May, surpassed the required mark at 02:23UTC, just eight days after its debut. Under parliamentary rules, petitions reaching 50,000 signatures within 30 days must be reviewed by the relevant committee, in this case, the Finance and Economy Planning Committee.

Seven years, three delays

The planned levy has already been delayed three times. Originally legislated in December 2020 for a 2022 rollout, it was pushed back to 2023, then 2025, and again to 2027, each time citing inadequate infrastructure and investor backlash. Critics say core gaps remain unresolved, including rules on staking, airdrops, and overseas exchange transactions.

The petition targets a tax set to take effect on 1 Jan, 2027, under which crypto gains exceeding 2.5mn won (around $1,700) annually would be taxed at 22%, combining a 20% other income levy and a 2% local tax. The measure would affect an estimated 13.26 million investors.

Stocks exempt, crypto not

Petitioners argue the tax creates an uneven playing field. South Korea abolished its financial investment income tax late last year, effectively exempting ordinary stock investors from capital gains levies. Applying a 22% rate to crypto while stocks remain untaxed, they say, violates basic principles of tax equity.

The government and the ruling Democratic Party back the implementation on schedule. The main opposition People Power Party has pushed for abolition, citing infrastructure gaps. 

Committee referral does not guarantee a standalone vote; the petition is likely to feed into broader deliberations on the tax bill in the National Assembly's tax subcommittee around November, following the annual parliamentary audit season. 

No petition referred to the committee in the current 22nd National Assembly has been formally adopted.