South Korea’s crypto-related stocks surged as lawmakers agreed to postpone the nation’s crypto tax implementation by two more years, moving the launch to 2027.
National Assembly Votes to Delay Crypto Tax
After prolonged debates, the National Assembly voted in favor of a government-backed bill to delay the crypto tax, initially set for January 2025, to 2027. This decision followed intense discussions between political parties.
Impact on Crypto-Related Stocks
Early Market Gains
According to Gangwondomin Ilbo, crypto-related stock prices spiked on the morning of December 2. However, these gains were largely temporary, with prices retreating slightly later in the day.
- Hanwha Investment & Securities, a shareholder in Upbit operator Dunamu, experienced an 8% rise in regular stock and an 11% rise in preferred stock prices.
- Woori Technology Investment, another Dunamu minority shareholder, recorded an 8.66% increase in its stock value.
Both firms specialize in IT investments, amplifying their connection to the crypto sector.
Modest Increases and Mixed Results
Other firms saw less pronounced growth:
- T Scientific, which holds shares in Bithumb, gained 1.66%. The company also invested in the Hanbitco exchange in 2022.
- Galaxia Moneytree, a co-founder of South Korea’s first Bitcoin-based payments service, experienced volatility. Its stock rose by 8% before plunging to a 2% loss.
These fluctuations reflect the dynamic nature of South Korea’s crypto market, where stock performance often mirrors market sentiment.
South Korea Awaits Crypto Firm Listings
Despite the buzz, no South Korean crypto company has yet debuted on the Korea Exchange.
- Bithumb abandoned its IPO plans in favor of pursuing a U.S. listing.
- K Bank, Upbit’s banking partner, recently halted its IPO plans but hinted at a potential third attempt in early 2025.
Political Concessions on Crypto Tax
On December 1, the Democratic Party, South Korea’s largest political bloc, conceded to government demands to delay crypto tax implementation. Their alternative proposal, which sought to align the annual crypto tax threshold with stock investment limits, failed to gain traction during the legislative process.
This delay provides breathing room for the crypto industry while highlighting ongoing challenges in balancing regulation and innovation
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