On October 22, lawmakers displayed stark differences in their views during the National Assembly's Finance and Economy Committee audit regarding the implementation of cryptocurrency taxation, which has been postponed three times so far.
The Democratic Party urged for swift implementation, arguing that continued delays undermine policy consistency, while the People Power Party contended that the taxation infrastructure remains inadequate and requires further enhancement.
According to Yonhap News, Democratic Party lawmaker Yoon Hoo-duk pointed out during the comprehensive audit of the Ministry of Finance that "countries like the United States, Japan, Germany, and the United Kingdom have already implemented cryptocurrency taxation, and currently, 48 countries are taxing these assets." He added, "We raised this issue years ago, and each time we postponed it, we were told preparations would be made, yet we are hearing the same arguments again."
Cryptocurrency taxation was introduced through an amendment to the Income Tax Act in 2020 and has faced three delays, with implementation scheduled for January 2024. The government is proceeding with administrative procedures in line with this timeline, but industry representatives argue that the lack of clear standards and inadequate infrastructure make the timing premature.
Yoon expressed concern, stating, "It undermines the foundation of South Korea when the National Assembly, after reaching a consensus, presents different opinions to postpone or abolish laws that have already been confirmed. If we shake established laws, what can we trust in governing the country?"
Conversely, People Power Party lawmaker Lim I-ja criticized the situation, saying, "Tax equity is collapsing. While we can tax domestic exchanges, overseas exchanges are not obligated to submit transaction statements to us."
He further noted, "The legal tax standards and infrastructure are still lacking," and criticized that it would take cryptocurrency businesses at least six to nine months to establish infrastructure according to the National Tax Service's guidelines, questioning what preparations have been made.
In response, Deputy Prime Minister and Minister of Finance Lee Hyung-il stated, "We received various criticisms during the last audit, and I mentioned that we would listen to more opinions from experts and the industry before making a decision. Since there are opinions from both the industry and the National Assembly, we will gather all of them and consider them carefully before making a judgment."
Meanwhile, Democratic Party leader Kim Min-seok appeared on the party's YouTube broadcast 'Minty 07' earlier that morning, asserting that "we need to finalize this matter this year," emphasizing the necessity of reaching a conclusion by the end of the year.
Kim revealed that he suggested to Deputy Prime Minister Lee during his visit to the National Assembly the need for a "final review and conclusion," stressing that it is time to begin focused discussions on whether to proceed with cryptocurrency taxation as planned or how to amend the system.
* This article has been translated by AI.
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