Jun Ji-hye, a reporter at the finance desk of The Korea Times, focuses primarily on economic policy and government agencies, mainly covering the Ministry of Finance and Economy, the Ministry of Budget and Planning, the National Tax Service and the Korea Customs Service. She previously covered financial authorities, including the Financial Services Commission and the Financial Supervisory Service, and earlier worked on the political, city and business desks, reporting on a wide range of issues.
Youth backlash grows as gov't pushes ahead with crypto tax plan
A representation of virtual cryptocurrency bitcoin / Korea Times photo by Shim Hyun-chul
By Jun Ji-hye
Petitioner warns tax could further weaken young voters' support for ruling party
The government’s plan to begin taxing digital assets in January is drawing mounting opposition from retail investors, opening a fresh political battlefront ahead of the 2028 general elections, as young voters protest what they see as unfair tax policy, according to market watchers on Thursday.
The complaints come as a growing number of young people have already expressed frustration over a series of economic policies by the Lee Jae Myung administration targeting young people’s housing, savings and investments.
The government and the ruling Democratic Party of Korea (DPK) say that crypto taxation will take effect on Jan. 1, when the current grace period expires. Under the framework, gains from trading or lending virtual assets exceeding 2.5 million won ($1,810) annually will face a 22 percent tax rate.
“I understand the principle of taxing income where it is made,” said Choi, a 33-year-old office worker in Guri, Gyeonggi Province. “What is hard to accept is pushing this through when so many details remain unresolved, especially after the government scrapped the stock capital gains tax before it even started.”
Despite growing complaints from young retail traders, the National Tax Service convened a closed-door expert panel on Monday to discuss guidelines ahead of finalizing the tax’s implementation details.
Yet, investors argue that key areas remain uncertain, including how authorities plan to assess taxes on newer crypto activities, such as staking and token airdrops.
Opposition has broadened following the repeal of the financial investment income tax, a proposed levy on domestic equity gains, which crypto investors argue has created an unfair double standard.
Finance Minister Koo Yun-cheol speaks at a meeting concerning external economic affairs at Government Complex Seoul, Thursday. Yonhap
Adding to the debate is a petition filed on the National Assembly’s official platform calling for a two-year delay in implementation of the tax. The petitioner warned that pushing ahead with the measure could cost the DPK support among young voters.
“The potential tax revenue may not justify the risk of losing support among 14 million crypto users in the next general election,” the petitioner wrote.
According to estimates based on Financial Services Commission data cited in the petition, annual tax revenues from digital assets are projected at 400 billion to 600 billion won. In a prolonged market downturn, that revenue could fall to 200 billion won, less than half the corporate tax paid last year by Dunamu, operator of the country’s largest crypto exchange, Upbit.
If the tax is implemented as planned, taxpayers would have to file their first tax returns in May 2028, just one month after the country’s 23rd parliamentary elections.
“It is unlikely that people who would have to pay the tax just a month later would vote for the party that pushed them to pay it,” the petitioner argued.
The petition, launched Aug. 21, has gathered more than 10,000 signatures as of Thursday noon. If it reaches 50,000 signatures by Sept. 20, the parliamentary committee will be required to formally deliberate on the matter.
The main opposition People Power Party is also pushing back against the government’s schedule, setting the stage for a tougher political battle ahead.
Rep. Jung Sung-kook introduced a bill on Aug. 10 to delay the implementation by three years, pushing the start date to Jan. 1, 2030, while Rep. Kim Sang-hoon is preparing separate legislation to secure a two-year extension.