The proposal would impose a 20% national tax on annual crypto gains exceeding 2.5 million won (about $1,740), with an additional local income tax bringing the effective rate to 22%. His comments came as legislators continued reviewing the country's broader digital asset tax framework, according to National Assembly proceedings. Under the current proposal, profits generated from selling or lending cryptocurrencies would be classified as "other income" under South Korea's tax code rather than capital gains. The framework is designed to improve cross-border tax reporting for digital assets and reduce opportunities for tax evasion by requiring participating countries to exchange information on crypto transactions. A bill introduced earlier this year proposes removing cryptocurrency income from South Korea's Income Tax Act, effectively repealing the planned levy before it takes effect.