South Korea’s ruling Democratic Party of Korea (DPK) was pushing in late 2024 to introduce long-delayed cryptocurrency tax rules in January 2025. The proposal faced opposition from investors and industry participants, who had already called for another delay. Seoul Shinmun reported at the time that lawmakers were considering changes to the planned tax system rather than abandoning it.
The proposed rules would have imposed a 20% national income tax, or 22% including local tax, on annual crypto gains above 2.5 million won. The threshold was under discussion, with the DPK proposing an increase to 50 million won. Another proposal sought to delay implementation until 2028.
Why the tax became a political issue
The debate was not only about the tax rate. Investors and crypto businesses also raised concerns about how gains would be calculated and how transactions would be tracked.
The proposed increase in the exemption threshold would have limited the number of investors affected by the tax. The proposal also allowed taxpayers to estimate the original purchase price when reliable acquisition records were unavailable.
That debate reflected a wider problem for South Korea: policymakers were trying to build a tax system for a market where trading activity is heavily concentrated among retail investors and where transaction records can span domestic exchanges, overseas platforms and self-custody wallets.
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Crypto tax plans moved beyond 2025
The January 2025 deadline was ultimately postponed. South Korea’s government moved the start date to January 1, 2027, making the 2025 rollout described in the title no longer current. The current framework calls for a 22% combined tax on annual virtual-asset gains above 2.5 million won.
The government has continued preparing for implementation, while investors and some lawmakers have pushed for another delay. In September 2026, a petition calling for a further two-year postponement reached the 50,000-signature threshold required for National Assembly review. Government officials, however, have maintained that the 2027 start should proceed as scheduled.
Meanwhile, South Korean authorities have continued using crypto-related enforcement tools. In Paju, local authorities were ramping up efforts to recover unpaid taxes by warning residents that cryptocurrency holdings could be seized and sold to recover outstanding debts.
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