South Korea Opposition Seeks Three-Year Crypto Tax Delay

Lawmaker Jeong Seong-guk intends to introduce an amendment to the Income Tax Act that would delay the levy by three years. Jeong argues that the additional time is necessary for authorities to refine the virtual asset tax framework and establish sufficient investor protections. According to the current law, gains exceeding 2.5 million won from crypto transfers or lending would be subject to a 22% rate—a combination of national and local income taxes.

This legislative challenge adds to an existing effort by the opposition to repeal the crypto tax entirely. Lawmaker Song Eon-seok previously introduced a bill to strike the relevant tax provisions from the code, citing concerns over unequal treatment compared to stock market investors. While the government maintains that the infrastructure for tax collection is ready, the opposition warns that premature implementation could drive trading activity toward overseas platforms and decentralized services. As the National Assembly prepares to debate these amendments, the future of the tax remains uncertain, complicated further by ongoing efforts to draft a comprehensive Digital Asset Basic Act.