Key Takeaways
- • Six young South Korean virtual asset investors, led by Telegram channel operator Cho Sang-hyuk, held a press conference at the National Assembly on October 21, demanding the virtual asset tax scheduled for January 2027 be delayed two years to January 2029.
- • The petition "Petition on a Two-Year Delay of Crypto Taxation" exceeded 50,000 signatures, meeting the threshold for referral to the relevant standing committee.
- • Investors cited unfinalized detailed tax standards, incomplete tax systems at all five major won-denominated exchanges, and the absence of loss carryforward deductions as core problems.
- • Under current rules, a 45 million won loss in 2027 offset against a 50 million won gain in 2028 would still generate roughly 10.45 million won in tax on a net gain of 5 million won, according to the investors' calculation.
- • The National Assembly Strategy and Finance Committee is scheduled to address virtual asset taxation at a comprehensive audit of the Ministry of Economy and Finance and the National Tax Service on October 22.
Summary
Six young virtual asset investors held a press conference at the National Assembly Communications Hall in Seoul on October 21, 2026, urging lawmakers to postpone the virtual asset tax scheduled for January 2027 by two years to January 2029. The event was attended by Cho Sang-hyuk, who runs the Telegram channel "Bulgaemi CRYPTO" and led the petition, along with Kim Hee-sang, Jung Da-woon, Cho Kyung-chan, Ha Heon-jung, and Han Seung-min. They were joined by People Power Party lawmaker Park Soo-young, a member of the National Assembly Strategy and Finance Committee. According to the report, this was the first time young investors had held a press conference at the Communications Hall to call for a tax delay.
The investors raised four principal concerns. First, detailed taxation standards remain unfinalized roughly two months before implementation. A National Tax Service commissioner told a parliamentary audit on October 13 that the relevant notice would be published in November, leaving the standards to be set just before the tax takes effect. None of the five major won-denominated exchanges has completed construction and verification of its tax reporting system.
Second, the absence of loss carryforward deductions produces what the investors describe as an excessive burden. Only same-year gains and losses are netted under current rules. The investors' example: a 45 million won loss (about $34,000) in 2027 and a 50 million won profit (about $38,000) in 2028 yield a true two-year net gain of 5 million won (about $3,800), yet the investor would owe 10.45 million won (about $7,900) including local income tax, on a taxable base of 47.5 million won after the 2.5 million won basic deduction. Third, the investors argued that spot and derivatives trading (futures and options) are taxed under different systems, and that treatment of staking, airdrops and decentralized finance remains unclear. Fourth, they highlighted uneven transaction-information access: South Korea joins the Crypto-Asset Reporting Framework (CARF) in 2027, while Hong Kong and Singapore begin exchanges in 2028 and the United States in 2029, leaving overseas exchange and personal wallet activity harder to verify.
Cho said, "What we are demanding is not that we pay no taxes," adding that the goal is a system enabling accurate and fair payment. "The government must not shift the blame for its lack of preparation onto the public," he said. Park Soo-young said taxable items, revenue estimates and detailed standards have not been confirmed, and questioned fairness given that virtual asset income is taxed while financial investment income tax has been abolished. The People Power Party adopted abolition of virtual asset taxation as party policy in March. The Strategy and Finance Committee's October 22 audit session is expected to continue the debate. Market observers cited in the report note that the timing and finalization of standards will shape exchange system investment and potential investor attrition, while a further delay could allow infrastructure overhaul but strain government revenue plans and policy credibility.
The investors raised four principal concerns. First, detailed taxation standards remain unfinalized roughly two months before implementation. A National Tax Service commissioner told a parliamentary audit on October 13 that the relevant notice would be published in November, leaving the standards to be set just before the tax takes effect. None of the five major won-denominated exchanges has completed construction and verification of its tax reporting system.
Second, the absence of loss carryforward deductions produces what the investors describe as an excessive burden. Only same-year gains and losses are netted under current rules. The investors' example: a 45 million won loss (about $34,000) in 2027 and a 50 million won profit (about $38,000) in 2028 yield a true two-year net gain of 5 million won (about $3,800), yet the investor would owe 10.45 million won (about $7,900) including local income tax, on a taxable base of 47.5 million won after the 2.5 million won basic deduction. Third, the investors argued that spot and derivatives trading (futures and options) are taxed under different systems, and that treatment of staking, airdrops and decentralized finance remains unclear. Fourth, they highlighted uneven transaction-information access: South Korea joins the Crypto-Asset Reporting Framework (CARF) in 2027, while Hong Kong and Singapore begin exchanges in 2028 and the United States in 2029, leaving overseas exchange and personal wallet activity harder to verify.
Cho said, "What we are demanding is not that we pay no taxes," adding that the goal is a system enabling accurate and fair payment. "The government must not shift the blame for its lack of preparation onto the public," he said. Park Soo-young said taxable items, revenue estimates and detailed standards have not been confirmed, and questioned fairness given that virtual asset income is taxed while financial investment income tax has been abolished. The People Power Party adopted abolition of virtual asset taxation as party policy in March. The Strategy and Finance Committee's October 22 audit session is expected to continue the debate. Market observers cited in the report note that the timing and finalization of standards will shape exchange system investment and potential investor attrition, while a further delay could allow infrastructure overhaul but strain government revenue plans and policy credibility.
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