A South Korean National Assembly petition to abolish digital asset taxation reached 50,000 signatures on the 21st, meeting the threshold for referral to a standing committee. The petition, posted on the 13th, achieved this milestone in just eight days. The current digital asset taxation policy imposes a 2.5 million won deduction limit and a 20% tax rate (22% including local taxes) on income from transfers and loans, with implementation scheduled for January 1, 2027. The petitioner argues that the policy fails to reflect public consensus and market realities, warning that enforced taxation could damage market order and hinder digital asset industry development, contrary to the government's revenue objectives.
Current Taxation Policy
Digital asset taxation is set to apply a 2.5 million won deduction limit and a 20% tax rate (22% with local taxes) to income from asset transfers and loans, effective January 1, 2027.
Government and Political Party Positions
The government has announced plans for normal implementation. The ruling Democratic Party also emphasizes implementing the taxation. In contrast, the People Power Party is pushing for abolition, citing insufficient infrastructure.
Petitioner's Arguments
The petition's author stated that the current digital asset taxation policy "may be perceived as a policy that does not sufficiently reflect national consensus and market realities." The petitioner further argued that "forced taxation enforcement risks causing adverse effects that damage market order and hinder digital asset industry development rather than achieving the original objective of tax revenue," calling for reconsideration and abolition of the tax.
Procedural Next Steps
Referral to a standing committee does not automatically lead to bill submission. Tax-related bills are typically reviewed collectively in November following parliamentary audits, going through the Finance Committee's Tax Subcommittee. The digital asset taxation abolition issue is expected to be discussed during this process. The petition itself is unlikely to proceed directly through the Tax Subcommittee, full Finance Committee, and plenary; instead, it will typically serve as reference material or evidence of public opinion during related bill review. According to National Assembly statistics from the public data portal, of 297 petitions referred to standing committees in the current 22nd National Assembly (May 2024–May 2028), zero have been adopted. The key factor is what legislation the ruling Democratic Party introduces and how it coordinates the matter. If related bills pass the Tax Subcommittee, they proceed through full Finance Committee deliberation before moving to the plenary. Given tax law review characteristics, bills are likely to be processed collectively by year-end.
