South Korea opposition moves to abolish 22% crypto tax, prompting Assembly clash ahead of 2027

Lawmakers from the opposition People Power Party introduced a bill to amend the Income Tax Act that would abolish South Korea’s planned 22% tax on cryptocurrency gains, a measure the party says would overturn the levy ahead of its scheduled rollout. The proposal was filed as a full repeal rather than as a modification of the tax regime, according to reporting on the bill’s text and sponsorship ^{[1] [2] [3]}.

The ruling Democratic Party has responded that it has not formed a consensus on abolishing the tax and will review the new proposal, setting up a potential legislative confrontation over the measure before the tax’s planned implementation date. Observers note the 22% levy has already been delayed multiple times, increasing the political urgency of the debate ^{[4] [5] [2] [6]}.

The bill moves the dispute into the National Assembly, leaving the ultimate status of the 22% crypto gains tax unresolved as lawmakers weigh repeal, revision or retention ahead of the 2027 start date ^{[1] [4] [2]}.