Key Insights
- South Korea’s Democratic Party plans to implement crypto gains tax in 2025, raising the taxable threshold to 50 million won (about $36,000).
- The proposal challenges the ruling party’s suggestion to delay crypto taxation until 2028.
SEOUL (MarketsXplora) – South Korea’s Democratic Party (KDP) is advancing plans to implement cryptocurrency gains taxation in 2025, challenging the ruling party’s proposal to delay the tax until 2028.
The KDP has proposed a significant modification to the original tax plan, suggesting an increased threshold for taxable crypto gains. While the initial proposal targeted profits exceeding 2.5 million won ($1,800) with a 20% tax rate, the new plan would only tax gains above 50 million won (approximately $36,000).
This revised approach mirrors the country’s existing stock taxation policy and comes after intense stakeholder pushback. The party argues that the higher threshold would effectively target only large-scale crypto investors, with minimal impact on smaller traders.
The cryptocurrency taxation timeline in South Korea has been complex. Originally scheduled for implementation in 2021, repeated delays resulted from industry and investor resistance. The current target date remains January 1, 2025, though potential agreements between political parties could accelerate or further postpone the implementation.
The ruling People’s Power Party (PPP) had previously suggested deferring crypto taxation to 2028, a move the KDP characterizes as a potential political strategy for future elections.
Despite the proposed threshold increase, the KDP maintains that the tax will primarily affect major crypto investors, with few traders expected to reach the $36,000 profit level.
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