Crypto Taxation Delayed Again for Another Two Years: "Fourth Time" Stains Tax Principles

[Anchor]

The policy to impose taxes on profits earned from virtual asset investments has been postponed once again, just two months before its scheduled implementation. With the rollout delayed for the fourth time, critics are questioning whether government policies can be trusted.

Reporter Chae Heesun has the details.

[Reporter]

The government announced that the virtual asset taxation, originally slated to take effect in January of next year, will be pushed back by another two years to 2029.

The law stipulates that if an investor earns more than 2.5 million won a year from virtual assets, a 22 percent tax will be levied on the amount exceeding that threshold. It was originally scheduled to take effect in 2022.

However, through changes in administrations, the implementation was postponed three times to 2023, 2025, and 2027, and now another decision to delay has been made.

[Lee Hyung-il / Deputy Prime Minister and Minister of Economy and Finance: I take it very seriously that following three previous postponements of the taxation implementation, I am once again announcing another grace period for taxation.]

The government stated that a grace period is appropriate from the perspective of fairness, as financial information on people who earned money through virtual assets in the United States will become accessible starting in 2029 through information-sharing with the U.S. side.

However, it remains uncertain whether the system will actually be implemented in 2029 as announced on November 5.

This is because political parties pass tax bills through bipartisan agreements, only to repeatedly advocate for delays whenever implementation draws near.

This is interpreted as being mindful of young voters, falling in line with the complete abolition of the financial investment income tax, which would have taxed profits earned from stocks.

Critics point out that pushing for an unprecedented fourth tax postponement in this manner could fuel tax resistance.

[Kim Hyun-dong / Professor of Business Administration at Pai Chai University: It creates unnecessary tax resistance and, consequently, could become a major obstacle to realizing the principle that taxation should be applied wherever there is income.]

Combined with repeated lack of preparation and suspicions of politically motivated decisions catering to public sentiment, the government faces unavoidable criticism for undermining the credibility of its own tax policies.

(Video by Lee Jae-young | Video editing by Lee Sang-min | Design by Kang Yoon-jung | VJ by Lee Ji-hwan)
※ Please note: This article was translated by AI and may contain errors.