Ruling party proposes gov't delay planned taxation of cryptocurrency
The ruling Democratic Party of Korea (DPK) on Wednesday formally proposed that the government postpone the implementation of taxation on cryptocurrencies, set to take effect next year. The party's supreme council decided to make such a proposal in a meeting, considering the need to give businesses and investors time to adjust to the new taxation scheme, according to DPK leader Kim Min-seok. "We…
On Wednesday, the Democratic Party of Korea, the ruling party in the country, formally suggested that the government delay the planned implementation of a new cryptocurrency taxation scheme. This proposal came following a meeting of the party's supreme council, which weighed the need to give businesses and investors sufficient time to adapt to the new tax system, according to Kim Min-seok, the leader of the DPK.
The party agreed that it would be prudent to first pass the Digital Asset Basic Act, which would establish a comprehensive framework for cryptocurrency taxation, allowing ample time for companies and investors to adjust, and to conduct a thorough review of the taxation principles, domestic industry conditions, and fairness among users, Rep. Kim explained.
The Korean government first introduced a cryptocurrency taxation scheme in 2020, but its implementation has been postponed multiple times, with the current plan to take effect on January 1st. If the proposal is accepted, it would be the fourth delay. The proposed scheme would impose an annual 22 percent tax on cryptocurrency gains exceeding 2.5 million won, which is approximately $1,880, including local income tax.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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