South Korea Crypto Tax Repeal Petition Draws 58,000 Signatures as 2027 Deadline Nears

A public petition seeking to repeal South Korea’s planned crypto tax closed with more than 58,000 signatures on June 12, pushing the issue into the National Assembly review process as investors challenge a levy set to begin in 2027.

The petition, filed through the National Assembly’s public consent system on May 13, passed the required 50,000-signature threshold in eight days. That milestone requires lawmakers to send the petition to a relevant committee for examination. The final count signals that opposition remains strong among retail crypto investors.

Crypto Investors Push Back on Tax Fairness

South Korea plans to tax annual virtual asset gains above 2.5 million won at a combined 22% rate. The rate includes a 20% income tax and a 2% local tax. The rules are scheduled to take effect on January 1, 2027, after several delays.

Petition supporters argue that the plan treats crypto investors less favorably than ordinary stock investors. They also point to the lack of loss carryforward deductions and limited ability to offset crypto losses against other financial income. For active traders, that structure could create tax bills that do not match real investment results.

Lawmakers Face a Wider Digital Asset Debate

The petition now moves from online consent to formal legislative review. A committee can examine the request, dismiss it, or advance related debate to the broader National Assembly. However, the petition alone does not repeal the tax.

The dispute also highlights a larger gap in South Korea’s digital asset policy. Industry participants have called for clearer rules covering staking, airdrops, decentralized finance, overseas exchanges, and personal wallets. Meanwhile, broader digital asset legislation remains uncertain, leaving investors and exchanges waiting for a more complete framework.

Government Still Targets 2027 Rollout

Finance officials have signaled that they intend to move ahead with the 2027 rollout. Tax authorities have also been preparing reporting and collection guidance with major domestic exchanges.

Still, the petition gives lawmakers a clear political signal. South Korea has one of Asia’s most active crypto markets, and tax policy could shape trading behavior, exchange compliance costs, and investor confidence. The next step depends on whether lawmakers treat the petition as a technical tax issue or as part of a broader plan for digital finance.