A South Korean ruling party lawmaker calls for delaying crypto taxation, while the government remains committed to implementing it on schedule

Odaily News: Min Byeong-deok, a senior member of the policy committee of South Korea's ruling Democratic Party, said that the crypto tax should be introduced only after the Basic Act on Digital Assets is passed, and it is not appropriate to start taxation before the basic law has been enacted. He pointed out that difficulties in tracking income from overseas trading platforms and the inability to carry forward 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 on schedule. Finance Minister Lee Hyung-il said that the current tax law provides for taxing virtual asset income 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 tax or will bear 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.