South Korea has delayed the implementation of its crypto tax policy by two years, citing the need for further institutional refinement.
Park Chan-dae, the floor leader of the Democratic Party of Korea, announced this decision during a press conference at the National Assembly.
The postponement follows extensive discussions, with Park emphasizing the need for an overhaul in the regulation of virtual assets. The delay comes amidst heightened political tensions and market volatility.
Postponement of Virtual Asset Taxation
The Democratic Party of Korea confirmed that the virtual asset tax, previously scheduled for implementation, would now be deferred. The party justified the decision by stating that the current regulatory framework required additional improvements to ensure systematic taxation.
This announcement coincided with debates over several supplementary budget bills. Of the 13 bills proposed by the government, eight were marked for immediate processing during the upcoming plenary session, while five others remained under further deliberation. Notably, the inheritance and gift tax bill faced rejection, with criticism focusing on its provision to lower the top inheritance tax rate.
The party also maintained its opposition to the government’s separate taxation of dividend income. Park described it as disproportionately favoring the wealthy. Discussions between ruling and opposition parties are expected to continue, with the National Assembly Speaker facilitating potential last-minute negotiations.