Democratic Party leader Kim Min-seok says crypto tax must be settled this year
In short
Democratic Party leader Kim Min-seok said on 22 October that intensive discussion should begin on whether to keep the planned tax on virtual assets as it is or supplement the system, and that the matter should be settled within the year. Chosun Ilbo and Newsis said the tax is due to start on 1 January 2027.
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Kim Min-seok (김민석), leader of the Democratic Party, said on 22 October that the tax on virtual assets should be settled within this year. Yonhap, Chosun Ilbo and Newsis all reported his remarks, made in an appearance on a Democratic Party broadcast. [ 1 , 2 , 3 , 4 ]
Kim said many voices and varied opinions had recently been raised on the matter, so he had suggested the day before that it was time for an intensive final check. According to Yonhap and Newsis, he also proposed to Deputy Prime Minister and Finance and Economy Minister Lee Hyeong-il (이형일), who visited the National Assembly, that they carry out a final review and reach a conclusion. He asked whether the tax would be applied as it is or the system supplemented in some way, and said the time had come to begin intensive discussion. [ 1 , 4 ]
Chosun Ilbo quoted Kim as saying that, as things stand, the tax is set to go ahead as planned, but that there are many voices and the party would carry out an intensive check because there are also various voices inside the party. He said the tax has been deferred several times, and the questions include whether the market environment is acceptable, what young people say and whether the system for taxation is in place. [ 2 , 4 ]
The outlets differ on the postponement history. Yonhap said the tax has been deferred three times since the system was created in 2020. Newsis said it was originally due in January 2022 and, after three delays, starts on 1 January 2027. Chosun Ilbo said it was first due in January 2022, was postponed twice to January 2025, and a December 2024 Income Tax Act amendment deferred it a further two years, so taxation begins on 1 January 2027 unless the law is changed. [ 1 , 2 , 4 ]
Chosun Ilbo added that Democratic Party lawmaker Park Min-kyu (박민규) submitted a bill on 16 October to defer the start of the tax to 2029, and that the People Power Party has made deferral its party position. [ 2 ]
In the same appearance, Yonhap reported, Kim commented on President Lee Jae-myung's stated wish not to punish writer Yoo Si-min (유시민), saying the President probably thought it better to handle the matter as a debate than a legal one. On the impeachment of Chief Justice Cho Hee-de (조희대), Kim kept to his position that building public consent comes first, and said a parliamentary investigation was being raised within the party. [ 1 ]
Why it matters
The party leader's call for a conclusion this year puts the question of keeping or changing the crypto tax on the agenda before the 2027 start date reported by the outlets. The documents do not say what the outcome will be.
Key facts
- Kim Min-seok, leader of the Democratic Party, said on 22 October that the virtual asset tax issue should be settled this year. [ 1 , 2 , 3 , 4 ]
- He said he raised the idea of an intensive final review the day before and proposed to Deputy Prime Minister and Finance and Economy Minister Lee Hyeong-il, who visited the National Assembly, that they review and reach a conclusion. [ 1 , 4 ]
- Kim framed the question as whether to apply the tax as it is or to supplement the system in some way. [ 1 , 2 , 4 ]
- He cited the market environment, the views of young people and whether the system for taxation is in place as issues. [ 2 , 4 ]
- Chosun Ilbo reported that, unless the law is amended, taxation starts on 1 January 2027 after a December 2024 Income Tax Act amendment deferred it by two years. [ 2 ]
- Democratic Party lawmaker Park Min-kyu submitted a bill on 16 October to defer the start of the tax to 2029, and the People Power Party has made deferral its party position, Chosun Ilbo reported. [ 2 ]
Confirmed by several sources
- Kim Min-seok said on 22 October that the virtual asset tax should be settled within this year. [ 1 , 2 , 3 , 4 ]
- Kim said the question is whether to keep the tax as it is or supplement the system, and that the time had come to start intensive discussion. [ 1 , 2 , 4 ]
- Kim said he had raised the matter a day earlier as the time for an intensive final check, and proposed a final review and conclusion to Deputy Prime Minister Lee Hyeong-il. [ 1 , 4 ]
Still unclear
- How many times the virtual asset tax has been postponed. Yonhap says three postponements since the system was created in 2020; Newsis says three delays from the original January 2022 start; Chosun Ilbo describes two postponements to January 2025 and then a further two-year deferral in December 2024.
- What the party will decide on the tax. Kim only said intensive discussion would begin and that the matter should be settled within the year; no outcome is given.