The South Korean government plans to levy a 22% tax starting in January next year on the portion of annual gains from virtual assets that exceed 2.5 million won, or about $1,810. Young retail investors have responded with strong opposition. By noon Thursday, a petition against the plan on the National Assembly's official platform had gathered more than 10,000 signatures, according to The Korea Times. Investors say details on how staking rewards, airdrops and other new types of crypto activity would be taxed have not yet been fully worked out. They also argue that the government's decision to scrap the capital gains tax on stocks makes the crypto levy a double standard. The petition warns that the ruling party could lose support among younger voters before the 2028 general election if the tax is forced through, while the estimated annual revenue would be only 400 billion to 600 billion won.
South Korea's government plans to impose a 22% tax on virtual asset gains that exceed 2.5 million won, or about $1,810, per year. The levy would take effect in January next year.
The proposal has drawn strong opposition from young retail investors. A petition opposing the tax on the National Assembly's official platform had secured more than 10,000 signatures by noon Thursday, The Korea Times reported.
Investors have pointed to several unresolved questions. For one, the tax treatment of staking rewards, airdrops and other new forms of crypto activity has not been defined. For another, the government has already abolished the capital gains tax on stock trading; taxing virtual assets alone, they argue, amounts to a double standard.
The petition also carries a political warning. If the government pushes the tax through, the ruling party could lose the support of young voters ahead of the 2028 general election. The expected fiscal benefit is small, however: the tax is projected to bring in just 400 billion to 600 billion won a year.
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