Overview
- On March 19, 2026, the People Power Party led by Rep. Song Eon-seok submitted an amendment to delete all digital-asset tax clauses from the Income Tax Act.
- The current framework would tax annual crypto gains above ₩2.5 million at 20% nationally plus 2% locally, scheduled to take effect on January 1, 2027 after multiple delays.
- Backers of repeal argue the dedicated crypto levy is inequitable versus stock investing, where gains enjoy far higher tax-free thresholds, and warn that VAT treatment could create double taxation.
- The bill cites recent U.S. SEC and CFTC guidance on crypto asset classification to argue digital assets should not be taxed like securities.
- The National Tax Service is building a 3 billion won AI system to track crypto transactions, targeting a pilot in November 2026 and full deployment by year-end while lawmakers debate the proposal.