Kim Min-seok, leader of the Democratic Party of Korea, said authorities will decide whether to implement taxation on virtual assets, or cryptocurrencies, after comprehensively reviewing market conditions and institutional readiness.

Speaking at a ruling party-government policy meeting on virtual-asset taxation at the National Assembly Members' Office Building on October 28, Kim said the principle that income should be taxed appropriately must be upheld. At the same time, he noted that the Digital Asset Basic Act, which would provide the institutional foundation for the virtual-asset market, has yet to be enacted.

Kim said policymakers need to examine whether imposing the tax without fully reflecting the characteristics of the virtual-asset market and its trading environment could create distrust and confusion among taxpayers. He added that they should also heed and reflect concerns over inadequate tax infrastructure, fairness issues involving overseas exchanges, and worries among young people seeking opportunities to build assets.

He said the meeting was convened to determine whether implementing the tax next year could produce side effects, how any such problems should be addressed, and whether it would be appropriate to introduce the tax as scheduled. He added that a conclusion should be reached after comprehensively reviewing public concerns and institutional conditions, while also accelerating legislation of the Digital Asset Basic Act.

Cho Seung-rae, chair of the National Assembly's Public Finance and Economic Planning Committee, also said the state of preparations for taxation requires further review. He said the virtual-asset market has changed significantly during the three postponements of the tax, and authorities need to verify whether the existing tax system can function properly. Any decision, he added, should be based on practical conditions rather than tax philosophy.

In particular, Cho said a government notice related to the tax that authorities plan to prepare by the end of October could be temporarily put on hold if it becomes an obstacle to the decision. In that case, the party and the National Assembly would need to conduct an additional review of the tax system's readiness, he added.

Lee Hyung-il, deputy prime minister and finance minister, said industry officials and experts agree with the principle of taxation but have argued that any framework should reflect market conditions that have changed since the tax regime was legislated in late 2020. He added that the government is considering a reasonable approach that the public can accept and that can be implemented smoothly in practice, and that it will consult closely with the National Assembly.