Democratic Party of Korea Floor Leader Han Byung-do said Tuesday that the party would complete its internal deliberations on the virtual asset tax debate and deliver the outcome to the government the same day.
Speaking at a national audit strategy meeting at the National Assembly, Han said concerns had been raised about whether sufficient overseas transaction data could be secured ahead of the planned introduction of a virtual asset income tax in January next year, and whether the burden would fall disproportionately on users of domestic exchanges. "The Democratic Party is well aware of these concerns and the range of views," he said. "We will work out a responsible solution in the direction that benefits the public as much as possible."
The virtual asset tax regime, established in 2020, has been delayed three times and is now scheduled to take effect in January next year. Under the plan, annual income from the transfer or lending of virtual assets — after a basic deduction of 2.5 million won ($1,890) — would be taxed at a combined rate of 22 percent, covering both other income tax and local income tax.
Cheong Wa Dae is leaning toward another delay and is reviewing various options.
Han said the party would carefully examine the fairness and predictability of the tax as well as the practical conditions for its implementation. "We will consult with the government on necessary supplementary measures, including the option of delaying the implementation date," he said.
Policy committee chair Kwon Chil-seung also said the party would settle its position through swift internal discussions and consultations with the government. "We will do our best to establish a rational system that balances tax justice with the vitalization of the virtual asset market, and we will also accelerate efforts to build a regulatory framework — including the enactment of a basic law — to strengthen the global competitiveness of digital assets," he said.
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