Korean finance chief says he will weigh crypto tax start after parliamentary audit clash
In short
Deputy Prime Minister Lee Hyung-il (이형일) told a National Assembly audit on 22 October that he will deliberate as much as possible before deciding whether crypto-asset taxation starts in January. Ruling and opposition lawmakers split over the delay, with the Democratic Party urging quick enforcement and the People Power Party citing missing infrastructure.
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Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il (이형일) said on 22 October that he will deliberate as much as possible before deciding whether crypto-asset taxation starts in January. He spoke at the National Assembly's Finance and Economy Planning Committee audit, replying to Democratic Party lawmaker Yoon Hu-duk (윤후덕), who asked for the authorities' position. [ 1 , 2 , 3 ]
Lee said he had previously promised to hear more from experts and industry before judging, and that a meeting was held for that purpose. He said that, with those views and those raised in the Assembly, he would deliberate as much as possible. Newsis, Chosun Ilbo and Yonhap carried the remark. [ 1 , 2 , 3 ]
Yonhap reported that the two sides differed. Yoon said the continued delay was damaging policy consistency and urged quick enforcement. He said the United States, Japan, Germany and Britain already tax crypto-assets, and that 48 countries do so. He said that at each postponement the government promised to prepare. People Power Party lawmaker Rim Yi-ja (임이자) said tax equity was collapsing, that overseas exchanges have no duty to submit transaction statements, and that crypto businesses need at least six to nine months to build infrastructure after a National Tax Service notice. [ 3 ]
Newsis reported that Lee said Korea expects to receive overseas data through CARF, the crypto-asset automatic information exchange framework. Rim answered that CARF is not all-purpose and analyses only about 14% of taxable transactions worldwide. Lee said other countries are proceeding in the same state. Rim added that quarterly submissions are due at the end of March, so a notice issued now might come too late. [ 1 ]
Park Hae-young (박해영), deputy head of the National Tax Service, told the committee that full data on DEX and overseas trading is hard to secure. He said the service plans to build systems by the end of 2026 using CARF, overseas financial account collection and sample data. [ 1 ]
Yonhap said the taxation was introduced by a 2020 income tax law revision and has been postponed three times. It said the government is proceeding with administrative procedures for the January start, while industry calls the timing premature, citing missing infrastructure. Separately, Chosun Ilbo reported Lee told the committee that housing supply indicators such as approvals and construction starts are rising. [ 2 , 3 ]
Why it matters
The taxation, introduced by a 2020 income tax law revision, has been postponed three times and is scheduled to start in January. Yonhap reported that the government is proceeding with administrative steps while industry calls the timing premature, so the decision remains open.
Key facts
- Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il (이형일) appeared at the National Assembly's Finance and Economy Planning Committee audit on 22 October. [ 1 , 2 , 3 ]
- Asked about starting crypto-asset taxation in January, Lee said he had promised to hear more from experts and industry, held a meeting for that purpose, and would deliberate as much as possible given those views and those raised in the Assembly. [ 1 , 2 , 3 ]
- Crypto-asset taxation was introduced by a 2020 income tax law revision and has been postponed three times; it is due to start in January under the current schedule. [ 3 ]
- Democratic Party lawmaker Yoon Hu-duk (윤후덕) said repeated delays damage policy consistency and urged enforcement. [ 3 ]
- People Power Party lawmaker Rim Yi-ja (임이자) said tax infrastructure is still lacking and that overseas exchanges have no duty to submit transaction statements to Korea. [ 1 , 3 ]
- Lee said Korea expects to receive overseas data through CARF, the crypto-asset automatic information exchange framework. [ 1 ]
- Park Hae-young (박해영), deputy head of the National Tax Service, said full data on DEX and overseas trading is hard to secure, and that systems are planned to be built by the end of 2026. [ 1 ]
Confirmed by several sources
- Lee said he will deliberate as much as possible, taking in expert, industry and parliamentary views, before deciding on the January start of crypto-asset taxation. [ 1 , 2 , 3 ]
- Rim Yi-ja said overseas exchanges have no obligation to submit transaction statements to Korea, and that crypto businesses need six to nine months to build infrastructure after a National Tax Service notice. [ 1 , 3 ]
Still unclear
- Whether crypto-asset taxation will start in January or be postponed a fourth time. Lee gave no decision and said only that he would deliberate.
- How much overseas trading CARF will cover. Rim said CARF analyses only about 14% of taxable transactions worldwide; Lee replied that other countries are proceeding in the same state. Only Newsis reported this exchange.
- Whether the National Tax Service systems will be ready in time. Park said they are planned by the end of 2026, while Rim said building takes six to nine months after a notice and quarterly submissions begin at the end of March.