South Korea plans to implement a 20% cryptocurrency tax from the beginning of 2025, and raise the tax exemption to nearly $36,000

According to the Seoul News, South Korea's ruling Democratic Party plans to implement a 20% tax policy (including local taxes of 22%) on cryptocurrency profits in early 2025 as originally planned. The tax was initially set to take effect on January 1, 2022, but due to strong opposition from investors and the industry, it has been postponed twice until 2025.

The revised plan will raise the tax-free threshold for crypto earnings from KRW 2.5 million (approximately USD $1795) to KRW 50 million (approximately USD $35919). In addition, the amendment allows for a certain percentage of the sales price to be declared as purchase cost when precise purchase records cannot be provided. The Democratic Party stated that raising the tax-free limit will effectively exempt most investors from paying taxes. The amendment is expected to be voted on by the Congressional Tax Subcommittee on November 25th and submitted for review at a full session of Congress on November 26th.