Korean lawmaker insists on cryptocurrency tax implementation next year

Jin Seong-jun, Chairman of the Democratic Party policy committee, appeared on a radio program this morning to discuss his stance on cryptocurrency taxation in South Korea. According to Money Today, Jin emphasized that cryptocurrency taxation should not be equated with the financial investment income tax, explaining that cryptocurrency is not linked to the real economy. He argued that, for the sake of legal stability and predictability, it is time to implement the tax as planned. To address concerns about tracking cryptocurrency transactions, Jin explained that while transactions on domestic exchanges can be monitored, those on overseas exchanges cannot. However, he proposed that domestic transactions could be taxed right away, with overseas transactions being taxed once monitoring capabilities are established by 2027. Jin also highlighted the importance of adhering to the principle that taxes should be applied wherever income is generated, stressing that capital income should be taxed to ensure the country’s financial stability. In addition, the Democratic Party is reportedly planning to propose raising the cryptocurrency tax exemption limit to 50 million won ($35,700) at the upcoming Strategy and Finance Committee meeting on Nov. 26.