South Korean Lawmaker Proposes Delaying Virtual Asset Income Taxation by Three Years to 2030

August 10th - South Korean People Power Party lawmaker Jung Sung-ho plans to introduce a bill proposing to postpone the implementation date of taxing virtual asset income by three years, from January 1, 2027, to January 1, 2030. The lawmaker noted that by delaying the implementation date until a comprehensive review of the relevant system, including taxation of virtual assets, is completed, a safeguard measure will be established to enhance taxpayers' expectations and prevent institutional confusion.

Under current regulations, starting from January 1st next year, income generated from the transfer or lending of virtual assets will be classified as "other income" and will be subject to income tax. Therefore, the part of the annual profit exceeding 2.5 million Korean won will be subject to a tax rate of 22%, including 20% for other income tax and 2% for local income tax. Against the backdrop of recent stock market volatility and surging real estate prices, which have led to concentrated attacks by the public on the government and the ruling party, the People Power Party seems to be actively seeking popular support by proposing legislation aimed at safeguarding the interests of investors in the virtual asset market. The People Power Party has consistently been at odds with the government's views, advocating for the abolishment of this tax.