Ruling party, gov't fail to agree on delay of cryptocurrency tax

The ruling Democratic Party of Korea (DPK) and the government struggled to agree for the third consecutive time on whether to postpone the planned tax on cryptocurrencies, scheduled to begin next year. The discussion took place at the National Assembly, involving DPK lawmakers and finance ministry officials, as Korea prepares to impose taxes on virtual assets on January 1st.

Rep. Oh Gi-hyoung, speaking to reporters, stated that the lawmakers reviewed several issues related to taxation. While some members advocated for taxation, as it had been delayed three times before, others proposed further improvements to the tax system. The officials at the meeting agreed on levying tax on virtual assets but expressed concerns regarding tax equity between users of domestic and foreign exchanges.

The Democratic Party of Korea intends to reassess the matters before reaching a final decision. Korea originally introduced a tax scheme on cryptocurrencies in 2020, but its implementation has been postponed three times. The taxation scheme stipulates that cryptocurrency gains exceeding 2.5 million won ($1,880) per year should be taxed.