The leader of the largest opposition party in South Korea, the Democratic Party of Korea, Park Chan-dae, announced the abandonment of plans to implement a cryptocurrency capital gains tax in 2025, agreeing to postpone it for another two years until 2027. The proposal to 'postpone the cryptocurrency capital gains tax' was put forward by the South Korean government and the ruling People Power Party. The Democratic Party had previously stated that the delay in taxation is a political tactic of the ruling party.
Initially, South Korea planned to impose a 20% tax on cryptocurrency gains (22% for local taxes), set to take effect on January 1, 2022. Due to strong opposition from investors and the industry, the plan has been postponed twice to January 1, 2025. Following today's press conference, the tax collection has been postponed again to 2027. The ruling People Power Party also proposed that 'a two-year grace period for the cryptocurrency capital gains tax is still insufficient and should be extended to 2028, as rapid taxation on cryptocurrencies is undesirable and may drive investors out of the market. The People Power Party hopes to delay the implementation until 2028 to fulfill commitments made during the election.' (Cointelegraph)