Kim Min-seok says party will gather public opinion before reaching a conclusion

South Korea’s planned tax on virtual-asset income, due to take effect in January, is effectively heading for another delay. Pressure is mounting for a fourth postponement because information-sharing with the U.S., a key part of the tax infrastructure, will not be possible until 2029, making only partial enforcement feasible. The ruling camp is also slowing the process as it weighs strong resistance from younger voters and stagnant approval ratings.

Rep. Oh Gi-hyung of the Democratic Party, the ruling party’s floor policy coordinator on the National Assembly’s planning and finance committee, told reporters after a party-government consultation on October 28 that he agreed with the principle of taxation, but that domestic tax fairness and broader system improvements were needed. Authorities can currently identify holdings, but face limits in tracking transfers, lending transactions and information from overseas exchanges, constraining simulations, he said. The party and government also agreed that enactment of a proposed Digital Asset Basic Act, which would govern the broader virtual-asset ecosystem, must come first. Oh added that the law should also serve as the basis for understanding any future crypto derivative products and remained an issue requiring further review.

Party leader Kim Min-seok told a Supreme Council meeting at the National Assembly that many participants favored first refining and supplementing the system, then delaying taxation for a certain period. He said the party would reach a reasonable conclusion after gathering public opinion and holding final discussions with the government.

Questions are also growing over the implementation timeline after the government failed to provide a firm answer on related administrative notices it had said would be ready by the end of October. Some in the ruling camp interpret the hesitation over taxing virtual-asset income as a move to avoid alienating younger voters, who are highly sensitive to asset policy, at a time when the administration is seeking to revive its approval rating. Under current rules, if the tax is enforced, a 22% rate would apply to annual income after a basic deduction of 2.5 million won ($1,800).

Choi Hyeong-chang, Hankyung.com reporter calling@hankyung.com