Key Takeaways
- • South Korea's main opposition People Power Party plans to open talks with the ruling Democratic Party to delay the taxation of virtual assets, currently scheduled to take effect in January 2027, according to Bloomberg-style reporting by bloomingbit citing Digital Asset.
- • Park Soo-young, deputy policy committee chair of the People Power Party, cited an unprepared tax system, unfair treatment relative to other financial assets, and gaps in tax standards, revenue estimates and exchange systems as reasons for the delay.
- • The party argues that taxing crypto income after scrapping the financial investment income tax would be inequitable.
- • Both ruling and opposition lawmakers have introduced bills to defer the crypto tax, with the bill review scheduled for November; the Democratic Party has not yet adopted an official position.
- • Young crypto investors representing the call for postponement asked for at least a two-year delay to strengthen loss carryforward, profit-loss offsetting and basic deduction rules, while not opposing taxation itself.
Summary
South Korea's People Power Party said it will seek talks with the Democratic Party to delay the taxation of virtual assets, which is scheduled to take effect in January 2027. According to bloomingbit, which cited Digital Asset, Park Soo-young, deputy policy committee chair of the People Power Party, made the remarks to reporters following a press conference at the National Assembly Communication Hall in Yeouido, Seoul, on October 21.
The party identified the state of preparedness of the tax system and fairness relative to other financial assets as its main concerns. It argues that imposing tax on crypto income after the financial investment income tax has been scrapped would be inequitable. The party also said a delay is needed because tax standards, revenue estimates and exchange systems related to the levy are not yet fully in place.
Park was cautious about the prospects for a bipartisan agreement. A bill to postpone the tax has also been proposed within the Democratic Party, but the party has not taken an official position. Park said it remains difficult to predict the outcome of the bill review scheduled for November.
The press conference included six young crypto investors who called for postponement. Cho Sang-hyuk, speaking for the group, said they do not oppose taxation itself but want institutional improvements first to ensure fair tax payment. Cho called for a delay of at least two years so the framework, including loss carryforwards, profit-and-loss offsetting and basic deductions, can be strengthened.
With lawmakers from both the ruling and opposition parties having introduced bills to defer the tax, the readiness of the tax infrastructure and fairness among investors are expected to be central issues in the upcoming legislative review.
The party identified the state of preparedness of the tax system and fairness relative to other financial assets as its main concerns. It argues that imposing tax on crypto income after the financial investment income tax has been scrapped would be inequitable. The party also said a delay is needed because tax standards, revenue estimates and exchange systems related to the levy are not yet fully in place.
Park was cautious about the prospects for a bipartisan agreement. A bill to postpone the tax has also been proposed within the Democratic Party, but the party has not taken an official position. Park said it remains difficult to predict the outcome of the bill review scheduled for November.
The press conference included six young crypto investors who called for postponement. Cho Sang-hyuk, speaking for the group, said they do not oppose taxation itself but want institutional improvements first to ensure fair tax payment. Cho called for a delay of at least two years so the framework, including loss carryforwards, profit-and-loss offsetting and basic deductions, can be strengthened.
With lawmakers from both the ruling and opposition parties having introduced bills to defer the tax, the readiness of the tax infrastructure and fairness among investors are expected to be central issues in the upcoming legislative review.
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