The South Korean government is continuing to gather opinions as it decides whether to proceed with taxation of virtual assets, or cryptocurrencies, now scheduled for January next year. The National Tax Service plans to finalize a related administrative notice by the end of October, but the government has not yet determined whether to grant an additional delay.
Lee Hyoung-il, deputy prime minister and finance minister, told the National Assembly’s Strategy and Finance Committee during a comprehensive parliamentary audit on Oct. 22 that the government would make its decision after carefully considering views from the industry, experts and lawmakers.
Questions about the government’s readiness for the tax continued during the audit. Yoon Hu-deok, a lawmaker from the Democratic Party, said the government had repeated the same promise to prepare each time the measure was postponed. Virtual-asset taxation was approved in 2020 and has since been delayed three times. It is now scheduled to take effect on Jan. 1, 2027.
The government recently reviewed market changes and tax conditions at a meeting with industry participants. Kwon Dae-young, first vice finance minister, met industry officials and experts on Oct. 20 and said the system had originally been built around spot trading when the framework was introduced in 2020, but related technology has advanced significantly since then. Lee added that he had already said the government would hear more from experts and the industry before making a decision, and that the meeting was part of that process.
The draft notice needed for tax administration has not yet been finalized. Cho Seung-rae, chair of the committee, said he had received materials from the government on its preparations and the notice, and that the government reported it planned to finalize the measure by the end of October.
The ruling party leadership wants a conclusion this year. Kim Min-seok, leader of the Democratic Party, said on the party’s YouTube program “Minti 07” on Oct. 22 that the issue should be settled this year. He said he had also proposed to Lee on Oct. 21 that the government conduct a final review and reach a conclusion, adding that it was time to begin discussions on whether to proceed with the tax as scheduled or revise the system.
