Finance minister says government will broadly gather opinions on crypto asset taxation
In short
Deputy Prime Minister and Finance Minister Lee Hyung-il told a National Assembly audit on Oct 6 that the government will broadly collect views from the National Assembly, experts and industry on crypto asset taxation. He was answering a ruling-party question on whether taxation planned from 2027 would go ahead as scheduled. Lee also said the government may consider further cuts to treasury bond issuance if market conditions warrant.
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Deputy Prime Minister and Finance Minister Lee Hyung-il said on Oct 6 that the government will broadly gather opinions on crypto asset taxation. Speaking at the National Assembly's Finance and Economy Planning Committee audit, Lee said he would collect “various opinions raised in the National Assembly” along with views from experts and industry on the different interests involved, Yonhap and Kyunghyang Shinmun reported. [ 1 , 2 , 3 ]
Lee was answering People Power Party Rep. Kim Sang-hoon, who asked whether the government's basic position is to impose crypto asset taxation from 2027 as scheduled. Kim argued that the infrastructure for taxation is not sufficiently in place, citing a lack of capacity to track and prove transactions made through overseas exchanges, decentralized exchanges and decentralized finance. He also said that imposing the tax while funds are flowing out of the domestic crypto market could hurt the market's growth. [ 1 , 2 ]
Asked about the expected tax revenue, Lee said there are “parts that are in fact very difficult for us to grasp,” adding that because taxation requires filings, reporting under the system begins next year and only then can estimates be made. When Kim said it is problematic to push ahead with taxation without knowing how much revenue it will raise, Lee repeated that he would gather a wider range of opinions. Told by Kim that it would be better to collect more views and judge carefully, Lee said he would keep it in mind. [ 1 , 2 ]
At the same audit, Lee addressed treasury bond issuance. Asked by Democratic Party Rep. Yoon Hu-deok whether issuance would be reduced in November and December as it was in October, Lee said the government will watch market conditions and “plan to consider additional cuts if necessary,” Kyunghyang Shinmun reported. He said there was agreement that excess tax revenue should first be used to adjust bond issuance, given tight supply and demand in the government bond market, and that he understands rates have fallen somewhat since the announcement. [ 2 ]
The finance ministry cut October treasury bond issuance by 5 trillion won from its original plan using excess tax revenue on Oct 1, according to Kyunghyang Shinmun. The excess tax revenue forecast announced at the end of last month was 63.2 trillion won, larger than the figure used when the supplementary budget was drawn up. [ 2 ]
Why it matters
The comments leave open whether the crypto asset taxation timetable will be kept, and how the government resolves the dispute over tracking infrastructure and market outflows. The bond-issuance remarks point to continued use of larger-than-expected tax revenue to manage government debt supply, which the finance ministry said has already eased market rates.
Key facts
- Deputy Prime Minister and Finance Minister Lee Hyung-il said the government will broadly gather opinions from the National Assembly, experts and industry on crypto asset taxation. [ 1 , 2 , 3 ]
- Lee was responding to Rep. Kim Sang-hoon of the People Power Party, who asked whether taxation due to start in 2027 would proceed as scheduled. [ 1 , 2 ]
- Kim said taxation infrastructure is insufficient, including for tracking and proving transactions through overseas exchanges, decentralized exchanges and decentralized finance, and warned that taxation could hurt the domestic market amid capital outflows abroad. [ 1 , 2 ]
- Lee said the size of the tax revenue is hard to determine, since reporting under the system begins next year. [ 1 , 2 ]
- Asked about reducing treasury bond issuance, Lee said the government will watch market conditions and consider further cuts if needed. [ 2 ]
- The finance ministry cut October treasury bond issuance by 5 trillion won using excess tax revenue on Oct 1, with this year's excess tax revenue projected at 63.2 trillion won. [ 2 ]
Confirmed by several sources
- Finance Minister Lee Hyung-il said at the Oct 6 National Assembly audit that the government will broadly collect opinions on crypto asset taxation; Yonhap, an official outlet, reported the statement. [ 1 , 2 , 3 ]
- The question was raised by People Power Party Rep. Kim Sang-hoon, who argued the taxation should be reconsidered because of insufficient infrastructure and possible market harm. [ 1 , 2 ]
Still unclear
- Whether the government will keep the 2027 start date for crypto asset taxation, or amend the timetable. Lee did not state a position on the schedule; he only said opinions would be gathered broadly.
- How much tax revenue crypto asset taxation would raise. Lee said the figure is difficult to determine because reporting only begins next year, so no estimate is given in the documents.
- Details of any further treasury bond issuance cuts, including amounts and timing. Lee said only that additional cuts would be considered if needed, with no figures given.
What local media are saying
Timeline, local time
- Yonhap reports Lee's remarks at the National Assembly Finance and Economy Planning Committee audit on crypto asset taxation. [ 1 ]
- Kyunghyang Shinmun reports Lee's remarks on treasury bond issuance and crypto asset taxation from the same audit. [ 2 ]
- Chosun Ilbo reports Lee's statement on gathering opinions on crypto asset taxation. [ 3 ]