South Korea's virtual asset taxation plan faces opposition from opposition parties, and the prospects of local elections may lead to policy changes

ME News Message, May 8 (UTC+8): South Korea plans to impose taxes on virtual assets starting next year, but the policy is facing strong opposition from the opposition party People Power Party, increasing uncertainty around the policy. Moon Kyung-ho, head of the Income Tax Division at the Ministry of Strategy and Finance, said during a parliamentary discussion that the government will adhere to the plan to impose taxes, emphasizing that income must be taxed. Under the tax law amendment, the portion of virtual asset income exceeding 2.5 million won will be taxed at a rate of 22%. However, the People Power Party believes it is unfair to tax only virtual assets while abolishing the financial investment income tax, and has pushed forward a bill to abolish the virtual asset income tax. The bill has now been submitted to the National Assembly’s Finance and Economy Planning Committee and is under discussion in the tax subcommittee. Experts say the ruling party may consider delaying or canceling the tax in order to secure support from young voters. (Source: MLion)