Independent lawmaker Han Dong-hoon reiterated that South Korea should delay its planned taxation of virtual assets, which is set to take effect next year.

In a Facebook post on October 22, Han said a decision to postpone the tax should be made without delay. He wrote that Vice Finance Minister Lee Hyoung-il said at a parliamentary audit earlier that day that the government would “make a decision after as much deliberation as possible” on virtual-asset taxation. Han added that if the issue is fully deliberated, he believes the conclusion will be a postponement.

Han said circumstances have changed significantly since the virtual-asset tax framework was first designed in 2020. The current plan taxes gains from the “transfer or lending” of virtual assets as “other income,” but he argued that framework cannot handle a complex ecosystem that continues to evolve, including transfers between exchanges, cold-wallet storage, staking rewards and airdrops.

That is why income related to virtual assets should not be taxed as “other income,” Han wrote. Instead, he said, South Korea should first determine coin types and the nature of each type of income through what he called “second-stage virtual asset legislation,” while putting in place an environment in which investors are properly protected.

He also said taxing only virtual assets would create a serious fairness problem now that the financial investment income tax, which had been intended to tax income from stocks and bonds, has been abolished. Such a system, he said, would unfairly burden investors by taxing annual gains while offering no way to offset losses and remaining vulnerable to tax avoidance through gifts.

Han said pushing ahead with the tax would make it impossible to prevent a “stock-market exodus” in the coin market. He added that a small number of taxpayers does not make an unfair tax acceptable. Investors would move overseas or into cold wallets, he wrote, and the estimated number of taxpayers based on pre-taxation data could fall to zero once the tax is actually imposed.