Exclusive: Democratic Party, Government to Hold Oct. 28 Virtual-Asset Tax Meeting as Delay Takes Shape

The government and the Democratic Party will hold a policy consultation at the National Assembly on Oct. 28 to decide whether to delay taxation on virtual assets.

A senior Democratic Party official told Korea Economic TV after a closed-door lawmakers' meeting on Oct. 27 that the party and the government would discuss the various views submitted to the party on virtual-asset taxation.

Another party official said the Democratic Party had settled on a plan to postpone the tax and would deliver its final position to the government at the Oct. 28 meeting.

The virtual-asset tax was originally set to take effect in 2022, but has been postponed three times over investor-protection concerns and gaps in the tax system. Under the plan, annual income from virtual-asset transfers or lending above a basic deduction of $1,810 would be taxed at 22%.

The tax is due to take effect in January next year, but another delay appears increasingly likely given unresolved institutional issues and sentiment among younger voters.

The presidential office had also been weighing several options, with momentum building toward another postponement of the virtual-asset tax.

The Oct. 28 party-government meeting on virtual assets is set to include key government officials, including Lee Hyoung-il, deputy prime minister and finance minister, along with the Democratic Party's policy committee.

Seong Nak-yun, Korea Economic TV reporter nyseong@hankyungtv.com

Jeong Jae-hong, Korea Economic TV reporter jhjeong@hankyungtv.com