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South Korea’s Democratic Party is pushing forward with its plan to tax crypto gains at the start of 2025, but is also offering to increase the threshold for taxable gains.&nbsp;
On Nov. 20, local media outlet Seoul Shinmun Daily <a data-ct-non-breakable="null" href="https://www.seoul.co.kr/news/politics/congress/2024/11/20/20241120500071?wlog_tag3=naver" rel="null" target="null" text="null" title="null">reported</a> that the Korea Democratic Party (KDP) had challenged the People’s Power Party’s (PPP) plan to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/south-korea-crypto-tax-delay-2028" rel="null" target="null" text="null" title="null">delay crypto tax to 2028</a>.&nbsp;
PPP, the country’s ruling political party, proposed on July 12 to delay the taxation of crypto gains to 2028. The KDP said that the PPP’s crypto tax deferral plan was a political trick that they aimed to re-use in future elections.&nbsp;
<h2 id="increasing-the-threshold-from-1-800-to-36-000">Increasing the threshold from $1,800 to $36,000</h2>
The KDP is pushing to implement the crypto gains tax in 2025, though it’s willing to raise the threshold for taxable crypto capital gains.&nbsp;
In the original tax plan, crypto investors were to pay a 20% annual crypto gains tax on profits of more than 2.5 million won ($1,800). However, the plan received backlash from stakeholders and crypto investors.&nbsp;
The KDP has offered a new plan to raise the tax threshold to gains exceeding 50 million won (about $36,000), similar to the country’s policy on stocks.&nbsp;
The KDP said that raising the threshold for taxable gains is similar to abolishing the crypto tax. There would be little tax effect since only a few investors make more than $36,000 in profit from their crypto investments.&nbsp;
The party said that with the new threshold, only big players will be hit with the crypto gains tax.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/south-korea-paju-city-crypto-seizure-tax" rel="null" target="null" text="null" title="null">South Korean city threatens to sell crypto of tax debtors</a>
<h2 id="crypto-taxation-delay-in-south-korea">Crypto taxation delay in South Korea</h2>
South Korea’s capital gains tax on crypto was initially scheduled to be implemented in 2021, but the backlash from crypto stakeholders and industry leaders led the government to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/south-korea-to-introduce-a-20-tax-on-crypto-trading-profits-in-2023" rel="null" target="null" text="null" title="null">delay the implementation</a> to 2023.&nbsp;
After politicians recognized investor concerns, it was postponed to Jan. 1, 2025. Still, if the KDP and the ruling party agree, the 20% capital gains tax may be implemented next year.&nbsp;<iframe width="100%" height="315" src="https://www.youtube.com/embed/MQj9248C7Uc" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/crypto-spy-life-sentence-china-youtuber-fraud-asia-express/" rel="null" target="null" text="null" title="null">Crypto spy jailed for life in China, YouTuber accused of $230M fraud: Asia Express</a>

South Korea’s Democratic Party pushes to implement 20% crypto tax in 2025

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