According to Odaily, South Korea's ruling party, the People Power Party, has proposed delaying the implementation of a virtual asset tax by two years. Party whip Choo Kyung-ho announced this proposal during a meeting of the National Assembly's highest committee, emphasizing the need for a system that investors can reasonably accept. The government and the ruling party are working on amending the Income Tax Act to postpone the tax, originally set to take effect in January next year, to 2027. However, the opposition from rival parties casts uncertainty over whether the amendment will pass in the full session of the National Assembly.
Choo Kyung-ho further stated that legislative support is necessary to alleviate investor concerns about recent financial market volatility and uncertainty. He argued that abolishing the financial investment income tax is the government's minimal commitment to reducing market uncertainty, urging the National Assembly to address the issue promptly. This stance comes amid criticism from the opposition, with Democratic Party spokesperson Noh Jong-myun labeling the delay in the virtual asset tax plan as "unacceptable." The debate highlights the ongoing tension between the need for regulatory frameworks and the desire to foster a stable investment environment in South Korea.