South Korea is set to tax virtual-currency gains from January 1, 2027, applying a 22% rate to profits exceeding 2.5 million Korean won after a basic deduction. The measure has triggered anger among young investors who view crypto as one of the few accessible routes to asset building amid stagnant wages, rising real-estate prices and worsening employment prospects. A May 2026 petition seeking abolition of the tax collected 50,000 signatures in eight days and reached a National Assembly standing committee, while another petition filed on July 21 said half of crypto investors are under 30. Critics also point to the absence of loss carryforward, meaning gains can be taxed even after larger losses in earlier years, and contrast the policy with the abolition of capital-gains taxation on individual investments in listed domestic stocks. The government says income-based taxation cannot be delayed, while Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said in July 2026 that the policy would be implemented and adjusted if necessary. The framework, created in 2020 under the Moon Jae-in administration, has already been postponed three times, and key tax criteria remain unresolved. Wider opposition reflects concerns over ISA (Individual Savings Account) changes, AI-related job losses, rising youth poverty, future welfare costs and repeated policy reversals. The National Assembly Budget Office expects deficit-related national debt to exceed 1,000 trillion Korean won in 2026, while critics say recent housing and tax measures have weakened confidence in the government’s ability to preserve a path to upward mobility.