Repeal of stock tax complicates South Korea's crypto tax plan

South Korea's planned implementation of a cryptocurrency tax next January is facing growing opposition from investors and politicians, who argue it is unfair following the abolition of a similar tax on stock market gains, The Hankyoreh reported. The core argument is that taxing crypto gains while stock investment income remains untaxed violates the principle of fairness. Calls are mounting to discuss the reintroduction of the Financial Investment Income Tax in tandem with the crypto tax, based on the principle that "where there is income, there is tax." Oh Moon-seong, president of the Korean Tax Policy Association, stated that the virtual asset tax and the Financial Investment Income Tax must be discussed together for the sake of equity. He warned that proceeding with the crypto tax alone would inevitably provoke strong tax resistance, and pointed out that the government has abandoned discussions on the stock tax due to fears of cooling down the stock market. Another tax expert commented that with the virtual asset market currently in poor condition, implementing the tax would surely lead to intense backlash from investors. The expert suggested there is a significant possibility that the government and the National Assembly will yield to pressure and postpone the tax once again.