Representative Bae Jun-young of the People Power Party, the opposition executive secretary of the National Assembly's Economy and Finance Planning Committee, urged the Democratic Party of Korea today (October 31) to make a swift decision, saying it is avoiding deciding on the postponement of virtual asset taxation scheduled for January next year.

Releasing a statement that day, Rep. Bae said, "Although virtual asset taxation is set to begin on January 1 next year, issues regarding tax equity and investor protection remain unresolved," adding, "As this is a market where young people and small investors also participate, taxation loopholes must not turn into a burden for them."

He pointed out that if virtual asset taxation is implemented as scheduled, "Domestic exchanges submit transaction records to the National Tax Service, but it is difficult to track income from overseas exchanges or peer-to-peer transactions, leaving only conscientious domestic investors to shoulder the tax burden." He also noted, "Because losses from the previous year cannot be deducted from profits the following year, even if an investor loses 10 million won this year and earns 5 million won next year, the earnings next year will still be taxed."

Rep. Bae emphasized, "Although the taxation framework was established in 2020 and deferred three times, problems with securing overseas transaction data and reporting support remain unresolved," adding, "During the parliamentary audit, industry opinions were raised that exchanges would require at least 6 to 9 months to establish tax systems even after the National Tax Service notification is finalized."

He continued, "The People Power Party has proposed bills to abolish or postpone the tax, but the Democratic Party remains passive," urging, "As the committee's executive secretary, I proposed to the Democratic Party to table the relevant bill at the Tax Subcommittee on November 2, but there has been no response yet. They must respond immediately to the proposal and reach a conclusion on whether to postpone taxation before implementation."

(Photo: Yonhap News)