People Power Party Warns "Unprepared Virtual Asset Taxation... Burden Will Fall on Youth" (Comprehensive)

Push for a Public Hearing on Virtual Asset Taxation Within the Year
Im Ija: "Fairness in Taxation Among Different Asset Classes Must Be Examined"
DAXA: "Issues Such as Acquisition Value and Infrastructure Should Be Addressed First"

Jeong Jeomsik, Floor Leader of the People Power Party, commented on the implementation of virtual asset taxation scheduled for January next year, stating, "With soaring prices, a stagnant employment rate, and the reality that buying a home through earned income alone is hardly feasible, a large number of young people are turning to the digital asset market. If taxation is rushed without adequate 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 attending the "Digital Asset Taxation System Improvement Policy Meeting" held at the National Assembly posed for a photo. 2026.09.21 Photo by Dongju Yoon

At the "Policy Meeting for Improvement of Digital Asset Taxation System" held at the National Assembly that afternoon, Jeong stated, "In the case of transactions conducted through overseas exchanges or personal wallets, it is often difficult to accurately determine the acquisition value and transaction details. Furthermore, criteria for reflecting income and losses from new types of transactions have yet to be clearly established."

Jeong also said, "Institutional arrangements surrounding the digital asset industry are still ongoing. We must consider whether it is appropriate to proceed with taxation according to the current schedule when the institutional foundation of the industry has yet to be fully established."

Jeong emphasized, "This is an issue directly tied to the property of the people. The government's role is not simply to collect taxes on a fixed date, but rather to ensure standards are predictable and fair for everyone and to make adequate preparations so that those standards can be effectively enforced in the field."

Im Ija, Policy Committee Chair of the People Power Party, pointed out, "Currently, income generated from the transfer or lease of virtual assets is classified as 'other income' instead of financial investment income like stocks. For virtual asset income, an annual basic deduction of 2.5 million won is applied, with a 20% tax rate imposed on income exceeding that amount. However, the situation today is very different from when the virtual asset taxation system was first designed."

Im commented, "The financial investment income tax, which was promoted alongside virtual asset taxation at that time, has since been abolished. Moreover, capital gains from small investors trading domestic listed stocks in the market are not currently taxed. In contrast, taxation is scheduled for virtual asset investment income, so we must carefully examine whether there are issues with fairness in taxation among different types of assets."

Oh Sejin, Chairman of the Digital Asset Exchange Association (DAXA), remarked, "Since the first discussions in 2020, virtual asset income taxation has undergone multiple rounds of review and consideration up to this point. There have been a variety of opinions on the timing of implementing the code classification infrastructure, and even now—on the eve of next year’s implementation—debate continues. This demonstrates a consensus that this system needs to be handled with caution."

Jeong Jeong-sik, Floor Leader of the People Power Party, is giving an opening speech at the "Policy Meeting on Improvement of Digital Asset Taxation System" held at the National Assembly on September 21, 2026. Photo by Yoon Dongju

Choi Sujin, Chief Floor Spokesperson of the People Power Party, met with reporters immediately after the meeting and stated, "There is a commitment to tax digital virtual assets, but the industry believes that preparations are entirely lacking. If the government forces implementation under these circumstances, the industry will shrink and capital will flow overseas." She emphasized, "It is the party's official stance that taxation on digital assets is premature. We plan to hold a public hearing within the year."

Kim Jaejin, Executive Vice Chair of DAXA, said, "There is consensus that taxation is necessary in the long term, but issues such as acquisition value, infrastructure, and withholding tax systems must first be resolved."

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