Han Dong-hoon Says South Korea Should Delay Digital-Asset Tax Again Until Second-Phase Legislation Is in Place

Independent lawmaker Han Dong-hoon said South Korea should again delay taxation of digital assets, which is scheduled to take effect in January next year. He said investor-protection rules and tax infrastructure should be put in place before the tax is implemented.

In a social media post on Sept. 19, Han wrote that digital-asset taxation should not be rushed. He said the government is already running a tax-revenue surplus and is not prepared to ensure fair taxation.

Han also criticized finance minister nominee Lee Hyoung-il for saying the tax should take effect as scheduled, arguing that the order of priorities is wrong. He said the more urgent task is to create an environment in which citizens holding coins are properly protected.

He added that rules should first be established to classify types of digital assets, set issuance requirements, and define the authority and scope of supervision. Han said discussion of the "second-phase digital-asset legislation," which should include those measures, has repeatedly stalled despite more than a year of debate.

He also said the tax infrastructure remains inadequate. South Korea still lacks the infrastructure needed to properly tax digital assets, he wrote, adding that with tax revenue boosted by the semiconductor boom, the move is not aimed at raising more revenue.

Han added that virtual-asset taxation should not proceed now and should be postponed again. If the Democratic Party administration is determined to impose the tax, it should debate the issue rather than push it through with its numerical majority, he said.