South Korea’s main opposition party, the People Power Party (PPP), has introduced a bill to remove digital asset income provisions from the country’s Income Tax Act, seeking to eliminate a planned crypto tax before its scheduled 2027 implementation. The measure has already been delayed three times since it was first introduced.
Under current rules, crypto gains exceeding 2.5 million Korean won would be subject to a 20% income tax plus a 2% local tax starting January 1, 2027. The PPP argues this creates an uneven playing field, as most retail stock investors are not taxed on gains unless they qualify as major shareholders.
The party also contends that taxing crypto income alongside existing value-added tax treatment amounts to double taxation. Enforcement difficulties, particularly in tracking acquisition costs for foreign investors on overseas platforms, are cited as a further concern.
The Democratic Party‘s senior deputy floor leader Kim Han-gyu said the ruling party has not formally discussed abolishing the tax but will review the proposal. Meanwhile, the National Tax Service is already procuring an AI-powered platform to analyze crypto trading data and detect potential tax evasion.
Originally reported by CoinTelegraph.
