Han Byung-do: "Well Aware of Virtual Asset Tax Concerns... Final Opinion to Be Delivered to Government Today"

▲ Democratic Party of Korea Floor Leader Han Byung-do speaks during a Supreme Council meeting at the National Assembly on October 26.

Democratic Party of Korea Floor Leader Han Byung-do stated today (October 27) ahead of a general meeting of lawmakers in the afternoon regarding the issue of virtual asset taxation, "We plan to finalize the gathering of opinions within the party today and deliver the result to the government."

Floor Leader Han made the remarks during a meeting on parliamentary audit strategies held at the National Assembly, saying, "We will responsibly come up with a solution in a way that helps the public as much as possible."

He noted, "Ahead of the implementation of taxation on virtual asset income in January next year, concerns are being raised over whether sufficient overseas transaction data needed for taxation has been secured and whether the burden is concentrated solely on users of domestic exchanges," adding, "The Democratic Party is well aware of these concerns and diverse opinions."

Virtual asset taxation has been deferred three times since the system was introduced in 2020, and as scheduled, is set to take effect in January next year.

At its core, a 22 percent tax rate combining other income tax and local income tax will be levied on annual income exceeding a basic deduction of 2.5 million won generated from the transfer or lending of virtual assets.

Within the party, opinions are divided between those who argue taxation should proceed this time to avoid undermining policy credibility and those who call for another postponement citing insufficient infrastructure preparations.

Cheong Wa Dae is reportedly reviewing various options, leaning toward deferring the virtual asset tax once again.

Han emphasized, "We will thoroughly examine the equity and predictability of taxation, as well as the actual conditions for implementation," adding, "We will synthesize various opinions, including a delay in implementation, and discuss necessary supplementary measures (with the government)."

Policy Committee Chair Kwon Chil-seung said, "We will settle our stance through prompt intraparty discussions and party-government consultations," adding, "We will do our utmost to create a rational system that balances tax justice and the revitalization of the virtual asset market, and also accelerate establishing institutional frameworks to enhance global competitiveness in digital assets, including the enactment of a framework act."

(Photo: Yonhap News)

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