A petition demanding the abolition of South Korea's planned 22% cryptocurrency tax has blown past 50,000 signatures, forcing a review by the National Assembly's Finance and Economic Planning Committee. The petition, lodged on May 13, crossed the threshold on May 21 and now sits at 53,359 signatures. The tax is set to take effect on January 1, 2027, applying a 20% rate plus local surcharges on gains exceeding 2.5 million won.
Why the petition gained traction
The petitioner argues the tax is fundamentally unfair. South Korea scrapped the Financial Investment Income Tax, which would have taxed stock gains — but crypto gains remain on the chopping block. The petition claims the levy targets young people trying to build wealth, ignores the current crypto market downturn, and lacks adequate investor protection infrastructure. That inequality argument has resonated: the petition hit the 50,000 mark in just eight days.
Three delays and counting
This isn't the first time the tax has faced pushback. South Korea has delayed implementing crypto taxation three times since the original 2022 start date. In March, People Power Party floor leader Song Eon-seok filed a bill to eliminate all digital asset tax provisions from the Income Tax Act altogether. Despite that, the Ministry of Economy and Finance publicly reaffirmed this month that the tax will proceed as scheduled in January 2027.
Next stop: National Assembly committee
With 53,359 signatures, the petition now heads to the Finance and Economic Planning Committee for review. The committee doesn't have to act on it — but the pressure is on. Lawmakers face a clear split: some want to scrap the tax entirely, while the ministry insists it's going ahead. The committee hasn't announced a hearing date yet, but the clock is ticking toward a 2027 implementation that investors and industry players are watching closely.
