PANews reported on November 20 that according to Seoul News, South Korea's ruling Democratic Party plans to implement a 20% tax policy on cryptocurrency earnings (22% including local taxes) in early 2025 as originally planned. The tax was originally scheduled to take effect on January 1, 2022, but was postponed twice to 2025 due to strong opposition from investors and the industry.
The amendment plans to increase the tax-free amount of crypto gains from 2.5 million won (about $1,795) to 50 million won (about $35,919). In addition, the amendment allows a certain percentage of the sales price to be declared as the purchase cost when accurate purchase records cannot be provided. The Democratic Party said that increasing the tax-free amount will actually exempt most investors from paying taxes. The amendment is expected to be voted on by the National Assembly Tax Subcommittee on November 25 and submitted to the National Assembly for deliberation on November 26.
