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South Korea Opposition Proposes Scrapping Tax on Crypto Gains

Some South Korean lawmakers are resisting the ruling People Power Party’s proposal to impose a 22% cryptocurrency tax, highlighting continued political division over digital asset taxation.

Fact Check
The core facts of the statement are well-supported by multiple news outlets. Song Eon-seok, the floor leader of the People Power Party (PPP), did propose a bill to abolish the crypto tax on gains above 2.5 million won. While some sources label the PPP as the 'opposition' (likely due to their minority status in the legislature), the PPP is the ruling party of President Yoon Suk-yeol. The second part of the claim regarding the AI-based tracking system for 2027 is also confirmed by reports from the National Tax Service (NTS) as seen in sources like MEXC and AInvest.
Summary

South Korea remains divided over plans to tax cryptocurrency gains, with some lawmakers now pushing back against the ruling People Power Party’s approach to a 22% levy. A bill introduced by the People Power Party on Thursday seeks to amend the Income Tax Act and fully abolish the planned crypto tax. The existing framework would tax profits above 2.5 million won at rates of up to 22%, and implementation has already been postponed three times since its original planned start in 2022. Separately, the National Tax Service is preparing an AI-based crypto transaction tracking system scheduled for launch on January 1, 2027.

Terms & Concepts
  • Income Tax Act: The law that defines how different forms of income, including investment gains, are taxed within a country.
  • Crypto gains tax: A tax applied to profits earned from selling or trading cryptocurrencies above a specified threshold.