Ruling Party: "Formally Proposes Deferral of Virtual Asset Income Tax to Government... Adaptation Period for Companies and Investors Advisable"

Moves to lay the groundwork for taxation by clearly defining the deferral period
Finance and Economy Planning Committee conveyed its view on virtual asset tax deferral to party leadership yesterday

Kim Minseok, leader of the Democratic Party of Korea, said on Nov. 4, “The Democratic Party of Korea is officially proposing to the government a delay in taxing income from virtual assets.”

At a Supreme Council meeting held at the National Assembly that day, Kim said, “We have given the matter careful consideration through discussions centered on the National Assembly’s Finance and Economy Planning Committee, including meetings between the party, the government and virtual asset businesses.” He added, “After comprehensively considering taxation principles, conditions in the domestic industry, and fairness among users, we agreed that it would be advisable to first enact a Digital Asset Act to establish an overall framework and allow companies and investors time to adapt.”

Kim Minseok, leader of the Democratic Party of Korea, speaks at a Supreme Council meeting at the National Assembly on Nov. 4. Choi Minhee, a Supreme Council member who called on Kim to “apologize to party members” over allegations that Shincheonji members joined the party, was absent from the meeting. 2026.11.04 Photo by Yoon Dongju

Kim said, “We also took into account that the taxation of income from virtual assets has been postponed in the past.” He added, “This time, we will clearly set a deferral period and thoroughly prepare the necessary groundwork, including the use of overseas transaction information, electronic verification, and methods for notifying taxpayers.” He continued, “We will accelerate efforts to revise relevant laws and tax systems to lay the foundation for companies to invest actively in new services and for users to trade with confidence.”

On Nov. 3, Assemblyman Oh Ki-hyung, the Democratic Party’s ranking member on the Finance and Economy Planning Committee, told reporters after a policy coordination meeting of the standing committee, “We gathered the views of committee members on virtual assets.” He added, “Many people spoke in favor of the basic principle of taxation that income should be taxed, but the majority view was that, given the external and policy environments, it is unavoidable to allow additional time for preparations before implementation.” He said, “We decided to make this recommendation to the party leadership.”

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