Youth backlash grows as gov't pushes ahead with crypto tax plan

The government’s plan to begin taxing digital assets in January is drawing mounting opposition from retail investors, opening a fresh political battlefront ahead of the 2028 general elections, as young voters protest what they see as unfair tax policy, according to market watchers on Thursday.

The complaints come as a growing number of young people have already expressed frustration over a series of economic policies by the Lee Jae Myung administration targeting young people’s housing, savings and investments.

The government and the ruling Democratic Party of Korea (DPK) say that crypto taxation will take effect on Jan. 1, when the current grace period expires. Under the framework, gains from trading or lending virtual assets exceeding 2.5 million won ($1,810) annually will face a 22 percent tax rate.

“I understand the principle of taxing income where it is made,” said Choi, a 33-year-old office worker in Guri, Gyeonggi Province. “What is hard to accept is pushing this through when so many details remain unresolved, especially after the government scrapped the stock capital gains tax before it even started.”

Despite growing complaints from young retail traders, the National Tax Service convened a closed-door expert panel on Monday to discuss guidelines ahead of finalizing the tax’s implementation details.