South Korea Crypto Tax Petition Tops 50,000 Signatures Ahead of 2027 Rollout

A growing movement against South Korea’s planned cryptocurrency tax is gaining momentum after a public petition calling for its abolition surpassed 50,000 signatures. The petition, submitted on May 13, officially crossed the review threshold on May 21 and currently holds more than 53,000 signatures, pushing it to the National Assembly’s Finance and Economic Planning Committee for consideration.

South Korea is scheduled to introduce a 20% tax on crypto profits beginning January 1, 2027, with local surtaxes increasing the effective rate to 22%. The tax will apply to annual gains exceeding 2.5 million won. However, critics argue the policy unfairly targets crypto investors while traditional stock investors avoid similar taxation after the government scrapped the Financial Investment Income Tax earlier this year.

The petition claims the crypto tax creates unequal treatment between asset classes and disproportionately impacts younger South Koreans seeking financial opportunities in a difficult economic environment. Supporters argue that rising housing prices and limited wealth-building options have pushed many young investors toward digital assets as an alternative investment strategy.

Petitioners also point to the ongoing weakness in the cryptocurrency market and the lack of sufficient investor protection measures as reasons to halt the tax implementation. According to the statement attached to the petition, imposing additional taxes during a market downturn could further reduce financial opportunities for younger generations already struggling with economic pressure.

South Korea has already delayed crypto taxation three times since it was originally expected to begin in 2022. Public opposition continues to grow, with lawmakers from the ruling People Power Party also attempting to remove digital asset taxation provisions from the Income Tax Act.

Despite mounting pressure, the Ministry of Economy and Finance recently reaffirmed that the crypto tax remains on schedule for January 2027, setting up a major political debate over the future of cryptocurrency regulation in South Korea.