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 Report, 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, the People Power Party, leading to increased policy uncertainty. The head of the Income Tax Division at the Ministry of Finance and Economy, Moon Kyung-ho, stated at a parliamentary discussion that the government will stick to the planned taxation, emphasizing that income must be taxed. According to the tax law amendment, virtual asset gains exceeding 2.5 million won will be taxed at a rate of 22%. However, the People Power Party believes it is unfair to only tax virtual assets while abolishing the financial investment income tax, and has promoted a bill to abolish the virtual asset income tax, which has now been submitted to the National Assembly’s Finance and Economy Planning Committee and is under discussion in the Tax Subcommittee. Experts analyze that the ruling party may consider delaying or canceling the tax to gain support from young voters. (Source: MLion)