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South Korea's Ruling Party to Gather More Opinions on Cryptocurrency Taxation, Aims for Quick Conclusion

On October 27, South Korea's ruling Democratic Party announced that it will further collect internal opinions on whether to postpone the taxation of virtual assets and will determine its position soon. Spokesperson Jeon Eun-soo stated to reporters after a general meeting of lawmakers that opinions will be gathered before a decision is made. Policy Committee Chairman Kwon Chil-seung conveyed various opinions regarding the taxation during the meeting, including views in favor of postponement. Lawmaker Ahn Doo-jae argued that taxation should be implemented alongside the establishment of the Digital Basic Asset Law, highlighting the differences in opinions at the meeting. Jeon Eun-soo emphasized that no party position was established that day, noting that there are about 60 days left until the tax implementation, and a decision will be made promptly. Since its establishment in 2020, the virtual asset taxation system has been postponed three times; if there is no further delay, it will be imposed starting January next year on annual income generated from the transfer and rental of virtual assets, taxed at a combined rate of 22% after a basic deduction of 2.5 million won.

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