▲ Democratic Party of Korea leader Kim Min-seok speaks on October 28 during a party-government consultation meeting on virtual asset taxation held at the National Assembly Members' Office Building. To his left is Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung-il.
Ahead of the planned implementation of virtual asset taxation next January, the ruling Democratic Party of Korea and the government held a party-government consultation meeting at the National Assembly to discuss whether to postpone it, but failed to reach a conclusion.
The Democratic Party plans to review the overall aspects related to the tax implementation and continue discussions at the party level.
Following the consultation meeting, which was attended by Democratic Party leader Kim Min-seok, Representative Cho Seung-rae, chairman of the National Assembly's Finance and Economy Committee, and Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung-il, Representative Oh Gi-hyung, the ruling party's ranking member on the committee, met with reporters and said, "We will review the matter further at the party level."
"There are several considerations regarding taxation that need to be discussed. Some argue that taxes should be imposed since it has already been delayed three times, while others believe several aspects need further refinement," Representative Oh said.
"While there is agreement on the need for virtual asset taxation, there seems to be an opinion that we need to examine the system in light of tax equity between domestic and overseas platforms as well as market changes," Oh noted. "Shouldn't we first streamline overall support and promotion policies related to virtual assets?"
Oh also said, "Questions were raised about when the Basic Act on Digital Assets will be enacted. There was talk that the legislation should be enacted as soon as possible, whether within this year or next year."
He added, "There were questions about how to obtain information from overseas exchanges, whereas information from domestic exchanges can be collected immediately once the system is established, and how to consider preconditions for taxation related to transactions."
During the meeting, issues such as the tax classification of financial products derived from virtual assets and loss carryforward deductions were also reportedly discussed.
When asked by reporters whether there was any discussion about how long the tax might be postponed, Representative Oh replied, "Wouldn't a specific decision be made after we examine various factors?"
The virtual asset taxation system was established in 2020, but its implementation has been postponed three times so far.
Unless a further postponement is decided, taxation will take effect in January 2027.
Under the current regulations, a 22% tax rate, combining other income tax and local income tax, will apply to annual income generated from the transfer or lending of virtual assets that exceeds a basic deduction of 2.5 million won.
As the consultation meeting ended without a conclusion on whether to delay virtual asset taxation, the ruling party is expected to go through another internal process to gather consensus.
The Democratic Party introduced the virtual asset taxation issue as an agenda item at a general meeting of lawmakers on October 27, deciding to determine whether to postpone it after gathering further opinions.
While arguments have clashed between those urging no further delays for policy consistency and those claiming it is premature due to inadequate legal and institutional frameworks, the ruling camp has been leaning toward postponement.
Some interpret this stance as keeping in mind the public sentiment among younger generations, who are sensitive to asset-related policies, at a time when the government is seeking momentum for a rebound as the decline in state approval ratings stabilizes.
(Photo: Yonhap News)
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