South Korean Deputy Prime Minister Koo Yun-cheol reaffirmed the government's plan to begin taxing Bitcoin and crypto gains in 2027. He said the government was proceeding as scheduled at a National Assembly committee meeting on July 29.

Current law sets a January 2027 start

The framework schedules a 22% combined tax on qualifying Bitcoin and crypto gains above 2.5 million won from January 1, 2027. The rate and threshold remain in current law after earlier delays pushed implementation back.

Koo said the government was proceeding on that timetable, but the tax can still be repealed or delayed before it starts. CoinDesk reported that a repeal bill backed by the opposition had been referred to a subcommittee (leaving lawmakers a route to remove the tax before it starts).

A separate proposal, along with a petition, has also kept the policy dispute active. Crypto.news reported that neither had changed current law, so the 22% tax and January 2027 start remained scheduled. Repeal or another delay was still possible.

The political fight remains open

The latest commitment is therefore a statement of government direction rather than a guarantee of the final outcome. Taxpayers and service providers face the current statutory date, while the repeal process can still alter what takes effect.

The threshold makes the policy concrete. Qualifying gains above 2.5 million won, once realized, would face the 22% combined rate, turning appreciation measured through the tax framework into a claim payable to the state. A holder's outcome after tax would change under that calculation.

The repeal bill, still sitting in subcommittee, exposes the choice before lawmakers. They can preserve the scheduled tax, cancel it, or revisit the timing before January 2027. Until one of those paths becomes law, describing the tax as inevitable would overstate the government's position and ignore the active opposition effort.

For holders, the practical uncertainty now sits in legislation rather than the protocol. The current tax date is clear under current law, but the policy can still change before enforcement begins.

Why It Matters

South Korea's scheduled 22% tax on qualifying gains above 2.5 million won would give the state a larger claim whenever citizens realize gains from Bitcoin and crypto assets. It can reduce what holders keep and add reporting obligations around an asset designed for direct ownership. Because the repeal bill remains in subcommittee, the sovereignty question is still live: lawmakers can either widen the state's reach into those gains or leave savers more room to choose and use harder money.