Finance minister nominee backs January crypto tax rollout despite industry, opposition pushback

The nominee to head the Ministry of Finance and Economy, Lee Hyoung-il, has stated his plans to introduce a cryptocurrency tax starting in January as originally scheduled. Despite opposition from industry players and opposition lawmakers, Lee maintains that the tax will move forward according to plan. He assures that specific tax rules will be clarified through a National Tax Service public notice by the end of the year, preventing any confusion for taxpayers during the filing process.

Lee argues that classifying crypto asset income as miscellaneous income under the existing tax structure is a practical and "appropriate" measure. This approach allows for the implementation of taxpayer-friendly measures, including a basic deduction and a single tax rate. He points out that various other financial transactions, such as stock trades involving major shareholders, foreign equities, unlisted shares, and transaction taxes, are already subject to taxation. Extending these tax rules to crypto assets, Lee contends, is necessary to ensure tax fairness.