South Korea’s Financial Services Commission Chairman Lee Eok-won said at a parliamentary audit that the planned taxation of virtual assets, scheduled to take effect next year, needs to take a wide range of circumstances into account. His remarks came after People Power Party lawmaker Song Eon-seok asked whether the tax should be scrapped or delayed, arguing that a Digital Asset Basic Act should come first while the legal nature of digital assets and the broader policy direction remain unsettled. Lee said legislation related to digital assets has entered its final round of consultations and that discussions will be pushed ahead as quickly as possible. On taxation, he said views remain divided and authorities are still collecting opinions. South Korea introduced virtual asset taxation in 2020 through a revision to the Income Tax Act, but implementation has already been postponed three times. The government is still moving forward with administrative procedures on a timetable for enforcement in January next year, even as parts of the industry and some figures within the ruling party argue that standards are still unclear and infrastructure is not yet ready.
Odaily reported that Lee Eok-won, chairman of South Korea’s Financial Services Commission, said during a comprehensive audit at the National Assembly’s Political Affairs Committee that the planned taxation of virtual assets, set for next year, requires authorities to fully consider a range of circumstances.
During questioning, People Power Party lawmaker Song Eon-seok asked whether the tax should be abolished or delayed. He said a Digital Asset Basic Act should be prioritized before taxation while the nature of digital assets and the direction of related policy have yet to be clearly determined.
Lee responded that legislation related to digital assets has entered its final consultation stage and that discussions will be advanced as quickly as possible. On taxation, he said opinions vary across different parties and relevant views are still being collected.
South Korea introduced virtual asset taxation in 2020 through an amendment to the Income Tax Act. The measure has already been postponed three times. The government is still proceeding with administrative steps on a schedule for implementation in January next year, but industry participants and some members of the ruling party argue that current standards remain unclear, infrastructure is insufficient, and the timing for enforcement is not yet mature.
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