Korean ruling party whip: The taxation of virtual assets should be postponed for two years to allow for the introduction of a reasonable system

The whip of the ruling party in South Korea, the People Power Party, Choo Kyung-ho, stated today: "According to the government's proposal, the implementation of virtual asset taxation should be postponed for two years."

He expressed this at a meeting of the Supreme Committee of Congress held on that day and emphasized: "We need to prepare a reasonable system that investors can accept."

The government and ruling party are pushing forward amendments to the Income Tax Law. The original plan was to implement virtual asset taxation from January next year but it has been postponed for at least two years until 2027. However, due to opposition from opposition parties, it is unclear whether it will pass in a full congress meeting.

In addition, Choo Kyung-ho also said: "In order to eliminate investors' worries about recent drastic changes and uncertainties in financial markets, there should be legislative backing. Abolishing financial investment income tax is the minimum commitment made by the government towards eliminating market uncertainty and reassuring both markets and citizens; Congress should deal with this as soon as possible."

Previously reported news indicated that Noh Jong-myun spokesperson for Democratic Party of Korea stated that postponing implementation of virtual asset tax plans by two years proposed by ruling party is “unacceptable”.