Jeong Jeomsik: "Virtual Asset Taxation Without Sufficient Preparation Will Become a Burden for Young People"

Im Ija: “Tax Equity Across Asset Classes Must Be Considered”

Jeong Jeomsik, Floor Leader of the People Power Party, addressed the upcoming implementation of virtual asset taxation scheduled for January next year, stating, "Amid soaring prices, stagnant employment rates, and a reality where even purchasing a home is not easy with only earned income, numerous young generations are participating in the digital asset market." He added, "If taxation is rushed without sufficient preparation, the resulting confusion and burden will inevitably fall mostly on young investors."

On the 21st, Jeong Jeomsik, Floor Leader of the People Power Party, and businesspeople posed at the "Policy Meeting on Improving Digital Asset Taxation System" held at the National Assembly. 2026.09.21 Photo by Dongju Yoon

At the "Digital Asset Taxation System Improvement Policy Meeting" held at the National Assembly that afternoon, Jeong noted, "For transactions conducted through overseas exchanges or personal wallets, it can be difficult to accurately verify the acquisition price and transaction history. Furthermore, clear standards on how to reflect income and losses from new forms of transactions have yet to be established."

He continued, "Systematic improvements surrounding the digital asset industry are also still in progress," and added, "We must carefully consider whether it is appropriate to push forward only the taxation schedule as planned when the institutional foundation for the industry has not been fully established."

Jeong emphasized, "This is a matter directly connected to the property of the people," and stated, "The government’s role is not limited to simply collecting taxes on a set date, but to establish predictable and fair standards for everyone and to be thoroughly prepared so that these standards can be properly implemented in the field."

Im Ija, policy committee chairwoman of the People Power Party, pointed out, "Currently, income generated from transfers and lending of virtual assets is classified as other income, not as financial investment income like stocks." She explained, "Virtual asset income is subject to a basic deduction of 2.5 million won per year, with a 20% tax rate applied to any excess. However, the situation has changed significantly since the virtual asset taxation system was first designed."

Im further noted, "The financial investment income tax, which was being promoted in parallel at that time, has been abolished, and currently, capital gains from domestic listed stocks traded on the exchange are not taxed for small investors. Meanwhile, since taxation on virtual asset investment income is scheduled, the issue of taxation equity across asset classes must be closely considered."

Oh Sejin, Chairman of the Digital Asset Exchange Association (DAXA), remarked, "Taxation of virtual asset income has reached this point after multiple reviews and discussions since the first debate in 2020," adding, "Throughout the process, there have been various opinions on income classification, taxation infrastructure, and implementation timing, and debates continue to this day. This reflects a shared understanding that the system must be approached with great caution."

This content was produced with the assistance of AI translation services.