PiCK
South Korea's Democratic Party Weighs Further Delay to Crypto Tax, to Consult Government After Caucus
Summary
- The Democratic Party of Korea said it is reviewing measures to revise the system, including an additional delay ahead of the planned January rollout of the virtual-asset tax next year.
- The Democratic Party said it will gather views on adjusting the implementation timing and improving the system at a general assembly of lawmakers, deliver them to the government, and speed up legislation on the Digital Asset Basic Act.
- The virtual-asset tax has already been postponed three times, and the presidential office is also discussing another delay, though whether to grant an additional postponement has not yet been decided.
Forecast Trend Report by Period
South Korea’s Democratic Party is reviewing ways to refine the virtual-asset tax system, including a further delay ahead of its scheduled January 2027 implementation.
Newsis reported on October 27 that floor leader Han Byung-do made the remarks at a meeting on preparations for the parliamentary audit at the National Assembly. He said the party would examine concerns surrounding crypto taxation, gather internal views through a general meeting of lawmakers and then consult with the government.
Han outlined key review items including whether records of overseas virtual-asset trading can be secured at a level sufficient for taxation and whether the tax burden could be concentrated on users of domestic exchanges. He also said the party needs to assess whether the tax framework reflects actual trading conditions.
The Democratic Party plans to gather views at a lawmakers’ general meeting later in the day on adjusting the timing of implementation and improving the system, then deliver those views to the government. It also plans to speed legislation on the Digital Asset Basic Act to define the legal nature of virtual assets and establish an overarching regulatory framework for the industry.
Kwon Chil-seung, the party’s policy committee chair, said opinion remains evenly split over whether to proceed with the tax. Some have raised concerns that the legal groundwork for virtual assets remains insufficient and that the burden on young investors could grow. Others argue that tax fairness requires taxation once income is generated.
Kim Han-kyu, the party’s senior deputy floor leader for policy, said the party is also reviewing the view that virtual assets should be taxed under the same standards applied to other investment assets such as stocks and bonds. With only about two months left before the planned rollout, the party intends to move quickly on consultations with the government and finalize its policy direction.
The virtual-asset tax was introduced through a December 2020 revision to the Income Tax Act, but implementation has been postponed three times because of a lack of investor-protection measures and tax infrastructure. Under the current schedule, it would take effect in January 2027.
The presidential office is also discussing another delay to the tax, according to the report. An additional postponement has not been decided, and the specific direction is to be determined through further consultations between the party and the government.
