South Korean ruling party lawmakers call for delay in crypto taxation, government still insists on implementation as scheduled

Odaily: Min Byung-deok, a senior member of the policy committee of South Korea's ruling Democratic Party, said that crypto taxation should only be introduced after the Framework Act on Digital Assets is passed, and that it is not appropriate to start levying taxes before the underlying law is in place. He pointed out that difficulties in tracking income from overseas trading platforms and the inability to carry over investment losses reflect that the conditions for tax administration are not yet mature.

The South Korean government still insists on implementing the virtual asset income tax as scheduled. Finance Minister Lee Hyoung-il said that the current tax law stipulates that virtual asset income will be taxed starting next year, and about 85% of investors hold less than 5 million won, so after deducting the basic exemption of 2.5 million won, most investors will not need to pay taxes or will face a relatively low tax burden. Under the current rules, income from the transfer or lending of virtual assets is subject to a 20% tax rate on annual net gains, losses may not be carried forward, and the actual filing and payment window is expected to open in May 2028.