South Korea Pushes for Crypto Tax in 2025 with Higher Threshold

South Korea's Democratic Party is moving forward with plans to implement a tax on crypto profits by 2025 but has proposed a significant adjustment to the tax rules.

The party wants to raise the threshold for taxable gains from the originally proposed 2.5 million won (approximately $1,800) to 50 million won (around $36,000).

This new approach comes in response to a proposal from the People’s Power Party (PPP), the ruling party, which suggested delaying the tax until 2028. The Democratic Party has criticized this deferral, claiming it’s a political strategy to be used for future elections.

While the proposed 20% tax on crypto earnings was initially planned to take effect in 2023, it faced strong opposition from investors and stakeholders, leading to delays.

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The new DPK proposal, which mirrors the tax structure applied to stock investments, seeks to reduce the burden on smaller investors. Under this plan, only those making substantial gains—over $36,000—would be taxed, leaving smaller traders unaffected.

If the two parties reach an agreement, the tax could be implemented sooner than expected, potentially as early as next year. However, whether this new proposal will gain full approval is still uncertain, as debates around crypto taxation continue to evolve in South Korea.

Alexander Stefanov