South Korean Investors Push for Fourth Delay of Crypto Tax

The petition argues that existing infrastructure is insufficient for tracking gains across private wallets, overseas platforms, and domestic exchanges. Proponents of the delay contend that immediate taxation would disproportionately harm younger investors currently holding significant losses, characterizing digital assets as a rare wealth ladder for the demographic. While the signature threshold triggers a formal committee referral, it does not mandate a policy change or halt the National Tax Service’s ongoing preparations for implementation.

Finance authorities continue to frame the 22% tax—comprised of a 20% national rate and a 2% local surcharge—as a necessary step toward fiscal equity, comparing it to existing levies on large-shareholder equity and overseas holdings. Lee Hyoung-il, the nominee for deputy prime minister and minister of economy and finance, recently signaled that the government intends to issue specific reporting standards before the end of 2026. To enforce compliance, the National Tax Service is actively acquiring blockchain-tracing software to monitor activity across public ledgers, while also preparing to leverage international data exchanges under the OECD’s Crypto-Asset Reporting Framework.

Despite the push for a delay, the legislative path remains uncertain. A separate petition calling for the total abolition of the crypto tax reached the same 50,000-signature requirement in May but failed to produce any amendment to the Income Tax Act. If the current law holds, investors will face their first tax filing period in May 2028, covering gains realized throughout the 2027 calendar year.