More than 50,000 South Korean citizens have signed a petition calling for the country's upcoming cryptocurrency income tax to be delayed by another two years, forcing lawmakers to formally consider the proposal.
The petition was submitted through the National Assembly's electronic petition portal on August 21. By the morning of September 14, it had collected 51,004 verified signatures in roughly three weeks.
Petitions receiving more than 50,000 verified signatures within 30 days are automatically referred to the appropriate parliamentary committee. The crypto proposal will therefore move to the National Assembly's Strategy and Finance Committee, which oversees income tax legislation.
However, reaching the threshold does not automatically change the law. The committee can review the petition alongside the government's position before deciding whether legislation should be amended.
A separate May petition seeking to abolish the crypto tax entirely reached 50,000 signatures within eight days but ultimately produced no legislative change.
Crypto Gains Face 22% Tax From 2027
Unless lawmakers intervene, South Korea's crypto tax regime will take effect on January 1, 2027.
Profits generated from selling, transferring or lending digital assets will be classified as miscellaneous income and taxed at an effective rate of 22%.
That consists of a 20% national tax plus a 2% local surcharge. An annual deduction of 2.5 million won, approximately $1,860, will apply before the tax becomes payable.
Income generated during 2027 would first need to be declared and paid in May 2028.
Opponents argue that introducing the tax now could hurt domestic investors while encouraging additional cryptocurrency activity to move overseas.
Petition Warns Crypto Activity Could Move Offshore
The petitioner pointed to the scale of funds already moving outside South Korea as one argument for another delay.
According to figures cited in the petition, around 700 trillion won, or approximately $520.5 billion, in crypto-linked funds moved offshore over five years. About 168 trillion won reportedly moved during the most recent year alone.
The petition also estimated that roughly 5 trillion won annually goes to overseas exchanges through fees.
Another argument focuses on younger investors. The petitioner described crypto investing as a “wealth ladder” for young South Koreans, who reportedly account for roughly half of the country's cryptocurrency investors.
Domestic exchanges have raised technical concerns as well. The Digital Asset eXchange Association (DAXA) told lawmakers this month that exchanges still lack a standardized data-sharing network with regulators and need additional time to build and test the necessary reporting infrastructure.
Government Still Supports January Launch
Despite growing opposition, government officials continue supporting implementation of the tax according to the existing timetable.
Lee Hyoung-il, nominee for deputy prime minister and finance minister, said in written responses submitted to lawmakers on Sunday that it is “desirable to implement the tax as scheduled.”
Lee also argued that classifying cryptocurrency profits as miscellaneous income is appropriate.
The National Tax Service is expected to publish more detailed standards through a public notice before the end of 2026, providing additional guidance ahead of the planned January launch.
Lee is scheduled to face his confirmation hearing on Tuesday, making crypto taxation one of the issues likely to receive additional attention.
Lawmakers Offer Competing Crypto Tax Plans
Political opposition to the 2027 deadline has meanwhile produced several competing proposals.
Lawmakers from the opposition People Power Party have introduced bills ranging from another postponement to eliminating the tax provisions entirely.
Rep. Song Eon-seog wants the crypto tax clauses removed, while Rep. Jung Sung-kook has proposed delaying implementation until 2030. Rep. Kim Sang-hoon has separately introduced an amendment that would move the starting date to 2029.
South Korea has already postponed its crypto taxation regime several times, but the government currently maintains that January 2027 should remain the final implementation date.
The latest petition ensures lawmakers will once again debate that timeline. With more than 50,000 citizens demanding another delay, the coming months will determine whether South Korea finally begins taxing crypto gains in 2027 or pushes the controversial regime back once again.
