Overview
- On March 19, Rep. Song Eon-seok of the People Power Party introduced an amendment removing all digital-asset tax clauses from the Income Tax Act.
- The current law would tax annual crypto gains above 2.5 million won at 20% nationally plus a 2% local levy starting January 1, 2027, after three delays.
- Proponents of repeal argue the plan creates unequal treatment versus other investments following the 2024 cancellation of broader financial-investment taxes.
- Lawmakers and critics warn of classification conflicts and possible double taxation because virtual assets are treated as commodities yet taxed under securities-like rules, with VAT also a concern.
- Enforcement remains contentious as the National Tax Service prepares a 3 billion won AI monitoring system for a November 2026 pilot and year-end rollout, while crypto gains remain untaxed pending legislative action.