South Korean lawmaker pushes for new delay on crypto tax

Han, a former leader of the People Power Party, contends that the government cannot effectively monitor crypto assets once they move from domestic exchanges to foreign platforms or private wallets. He maintains that the borderless nature of virtual assets creates a loophole, potentially penalizing users of regulated domestic platforms while leaving offshore activity largely unmonitored. While the government plans to utilize the OECD’s Crypto-Asset Reporting Framework and new wallet-tracing software, Han claims the framework may cover less than 20% of trading activity.

Legislative and public resistance

The push for a delay has gained traction beyond political circles, with a public petition seeking a two-year postponement successfully crossing the 50,000-signature threshold required for parliamentary review. This follows a separate petition earlier this year calling for the tax to be scrapped entirely. Despite these efforts, the Ministry of Economy and Finance has held firm on the 2027 launch date, recently reaffirming its commitment during the finalization of its 2026 tax reform proposals. Finance officials argue that the administrative infrastructure has matured significantly since the tax was first proposed in 2020, noting that most retail investors hold assets below the 2.5 million won deduction threshold. As the debate intensifies, Han has vowed to block the implementation, mirroring his involvement in the political maneuvering that successfully deferred the tax in 2024.