TLDR
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South Korea lawmaker urges repeal of 22% crypto tax before its 2027 launch.
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Park says the planned crypto levy unfairly targets around 13 million users.
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Crypto gains above 2.5 million won would face a combined 22% tax rate in 2027.
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Park warns the tax could push more Korean crypto capital to overseas markets.
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Loss carryforward rules add pressure to South Korea’s growing crypto tax debate.
South Korea faces renewed pressure to scrap its planned 22% tax on crypto gains before January 2027. People Power Party lawmaker Park Soo-young criticized the levy after comparing it with domestic stock taxation. His intervention adds pressure as the government prepares to implement the measure.
South Korea Crypto Tax Faces Fresh Political Pressure
Park said the tax unfairly targets about 13 million digital asset users across South Korea. He argued that policymakers removed the financial investment income tax while retaining a separate crypto levy. That difference supports opposition calls for repeal or another delay.
Under current law, South Korea will classify virtual asset transfer and lending income as other income. The rules start January 1, 2027, after lawmakers postponed implementation three times. Gains above 2.5 million won face a 20% national tax plus a 2% local levy.
The government has kept the 2027 start date despite opposition resistance. Recent tax planning also omitted another postponement, reinforcing the administration’s intention to proceed. The first filing period for 2027 crypto income comes in May 2028.
Park Warns South Korea Could Drive Capital Overseas
Park argued that the tax could push more capital toward overseas crypto exchanges. He also raised concerns about transfers into private wallets. He rejected claims that taxing digital assets would redirect money into domestic shares.
Park argued that the policy could weaken local activity and increase overseas transfers. He cited about 124 trillion won moving offshore during last year’s first nine months. Separate regulatory data also showed heavy crypto outflows from South Korean platforms during 2025.
Authorities have tightened rules covering cross-border virtual asset transfers and reporting. South Korea expanded oversight of overseas crypto movements through its foreign-exchange framework. Businesses handling qualifying transfers must meet registration and reporting requirements.
Loss Rules Add Another Dispute Before 2027
Park also criticized the tax because current rules exclude loss carryforwards. That structure prevents traders from offsetting future gains with losses from earlier years. The issue strengthens claims that the framework treats digital assets differently from other assets.
The People Power Party has introduced legislation seeking to remove the crypto tax from South Korea’s Income Tax Act. Another opposition proposal would delay implementation until 2030 instead of abolishing the levy. Both efforts challenge the government’s current plan to begin taxation next January.
For now, South Korea remains on course to impose the 22% combined rate from January 1, 2027. Any cancellation or delay requires lawmakers to amend the existing framework before implementation. Park’s latest intervention adds pressure to a dispute that remains unresolved before the deadline.
