South Korea’s debate over taxing virtual assets remains unsettled ahead of the planned start date next year. According to Yonhap News Agency, Financial Services Commission Chairman Lee Eok-won told the National Assembly’s Political Affairs Committee during a comprehensive audit that authorities need to "fully consider various circumstances" before moving ahead with the tax. The comment came after People Power Party lawmaker Song Eon-seok asked whether the measure should be scrapped or delayed, arguing that taxation should not come before the legal nature of digital assets and the broader policy framework are clearly defined. He said priority should be given to passing the Digital Asset Basic Act. Lee said crypto-related legislation is in its final stage of coordination and that discussions will be pushed forward as quickly as possible. On taxation, he said views remain divided and authorities are still gathering opinions. South Korea introduced the virtual asset tax framework in 2020 through a revision to the Income Tax Act, but implementation has already been delayed three times. The government is still proceeding with administrative steps for a January launch next year, even as parts of the industry and some members of the ruling party say standards and infrastructure are not yet ready.
South Korea’s Financial Services Commission Chairman Lee Eok-won said authorities need to "fully consider various circumstances" regarding the taxation of virtual assets scheduled to take effect next year, according to Yonhap News Agency.
Lee made the remark during a comprehensive audit by the National Assembly’s Political Affairs Committee. On the same day, People Power Party lawmaker Song Eon-seok asked whether the tax should be abolished or delayed. Song said taxation should not move ahead before the nature of digital assets and the broader policy direction are clearly defined, and argued that the Digital Asset Basic Act should take priority.
Lee responded that legislation related to digital assets is now in its final stage of coordination and that discussions will be advanced as quickly as possible. On the tax issue, he said opinions vary and authorities are still collecting views.
South Korea first introduced taxation on virtual assets in 2020 through an amendment to the Income Tax Act. The measure has already been postponed three times. The government is currently moving forward with administrative procedures based on a timetable for implementation in January next year. Still, industry participants and some figures within the ruling party believe the timing is premature because standards remain unclear and supporting infrastructure is insufficient.
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