A 2027 start gets another endorsement
South Korea’s push to tax crypto gains is back on track, at least politically. In a May 4 television interview on MTN News’ “Yeouido Crossroads,” Democratic Party lawmaker Jin Sung-joon reaffirmed his support for starting virtual asset taxation in 2027, according to the CoinDesk source text.
Jin Sung-joon chairs the National Assembly’s Special Committee on Budget and Accounts. The source says he resisted arguments for further delays and called postponing again irresponsible without a compelling reason.
The proposed deduction limit targets larger holders
The same source says Jin Sung-joon also proposed raising the deduction limit to 50 million won, roughly $37,000. CoinDesk’s text frames this as a way to exempt small investors while focusing the tax burden on large-scale holders, often described as “whales.”
The source adds that Jin Sung-joon argues the tax supports fiscal fairness and helps regulate South Korea’s expanding digital asset market.
A deadline that has already slipped, again and again
CoinDesk notes the taxation debate has dragged on since the government first proposed taxing crypto gains in 2020. That plan targeted a 2022 start but was pushed back multiple times over political and industry concerns tied to market volatility, investor protection, and administrative readiness.
The source text gives this timeline: 2020 proposed taxation over 2.5 million won, 2021 delayed the start to 2023, 2022 moved it to 2025, and 2023 set the date to 2027. It also cites 2024 as the moment Jin Sung-joon argued against another delay.
Why 2027 could be more workable, but not smooth
The CoinDesk source text says exchanges and regulators are more prepared now than in earlier rounds. It points to strengthened reporting requirements from South Korea’s Financial Services Commission (FSC) and improved capacity to track transactions. The source also claims compliance systems on exchanges have matured since earlier delays.
Still, the same text flags open problems. It says the definition of “virtual assets” is still evolving, with NFTs and DeFi potentially landing under different rules. It also calls cross-border enforcement difficult and notes that while South Korea requires exchanges to register with the FSC, peer-to-peer trading can complicate oversight.
The 2027 date, if it sticks, is likely to reshape how South Korean retail traders and larger holders manage their asset risk. But based on the source text alone, the outcome depends on how the law defines coverage and how enforcement handles edge cases like DeFi, NFTs, and cross-border activity.