"Fearing Youth Will Turn Away Further": Virtual Asset Tax Likely Put on Hold

[Anchor]

With about two months left before the implementation of virtual asset taxation, the government and the ruling party put their heads together today (October 28). While no final conclusion has been reached, the weight is leaning toward delaying it once again.

Reporter Kim Hye-min reports.

[Reporter]

Democratic Party leader Kim Min-seok and Deputy Prime Minister for the Economy Lee Hyung-il, among others, gathered together from the morning.

Discussions continued over whether to postpone the taxation of virtual assets, but they failed to reach a conclusion.

[Oh Gi-hyoung / Democratic Party Lawmaker: "There are opinions that since it has already been delayed three times, we should implement the tax now, while others suggest addressing a few questions and making further improvements."]

Under the virtual asset taxation system, a 22% tax is levied on annual net profits exceeding 2.5 million won gained from selling or transferring virtual assets.

The Democratic Party stated that tax equity between domestic and overseas exchanges and an overhaul of the system in response to market changes are necessary, but weight is leaning toward an additional delay.

[Kim Min-seok / Democratic Party Leader: "Many opinions were voiced that it would be desirable to refine and supplement the relevant system, and then defer implementation for a certain period."]

Analysts note this is closely tied to the sentiment of young voters, who have a strong interest in virtual asset investments.

A two-term lawmaker from the Democratic Party said, "Delaying taxation may not bring back young people whose minds have already drifted away, but it carries the intention of preventing them from turning away even further."

However, critics point out that the grounds for postponement are weak in terms of tax equity—taxing where there is income—and tax justice.

In particular, some voices argue that the rollout can no longer be delayed, given that it has already been postponed three times and countries such as the United States and Japan are already taxing virtual assets.

[Kim Hyun-dong / Business Administration Professor at Pai Chai University: "The argument either lacks grounds or is overly exaggerated. In the case of capital gains tax on overseas stocks as well, taxation was introduced first, and only afterward was information regarding overseas stock accounts provided..."]

The Democratic Party is expected to decide on adopting an official party stance soon regarding whether to postpone the tax.

(Camera: Oh Young-chun, Lee Seung-hwan | Video Editing: Wi Won-yang | Graphics: Han Seung-soo, Park Taeyoung)
※ Please note: This article was translated by AI and may contain errors.