[On-site Video] "Ah, This Doesn't Seem Right..." Reactions of 20s and 30s to Tax Imposition on Coin Income

[Asia Economy reporters Seunggon Han and PD Jingeun Yoon] "Shouldn't the tax level be adjusted a bit?", "This doesn't seem quite right..."

Opinions are divided over the taxation of virtual currency income. The government maintains its stance to impose taxes starting next year, but among those in their 20s and 30s who invest heavily in coins, various views are emerging. Some express support but also criticize the level of taxation.

According to data submitted by Korea's four major cryptocurrency exchanges?Bithumb, Upbit, Korbit, and Coinone?to the National Assembly (Assemblywoman Eunhee Kwon of the People’s Party), there were 2.49 million new sign-ups from January 1 to March 31, a three-month period.

Among them, those in their 20s (810,000) and 30s (760,000) accounted for 1.58 million, or 64%. Those in their 40s (470,000, 19%) and 50s (210,000, 9%) followed.

The age group that invested the most money among new sign-ups was the 30s (KRW 445.2 billion), followed by the 40s (KRW 350.7 billion), 50s (KRW 213.8 billion), and 20s (KRW 205 billion). Since the market has a relatively young investor base with 64% in their 20s and 30s, opinions on coin taxation are diverse.

Citizens in their 20s and 30s met at Cheonggyecheon in Seoul expressed partial agreement with the government's policy but also felt it might be somewhat excessive.

A 20-something office worker, Mr. A, said about virtual currency trading, "I used to trade in the past but not anymore," adding, "I think imposing up to 20% tax on profits is a bit too much."

Another office worker in his 30s, Mr. B, pointed out, "Virtual currency has been around for a long time, but back then (early trading) people didn’t pay much attention. As more people started trading and the volume increased, more people began profiting, so now it seems like they want to quickly collect taxes as if putting out a fire."

Citizen C said, "I have been trading on exchanges for about half a year since March 2021," emphasizing, "I expect the government to regulate so-called 'eat-and-run' exchanges and low-quality coins through industry regulations."

Meanwhile, as the government announces its stance on taxing virtual currency income, there are opposing views in the political arena. Assemblyman Woongrae Noh of the Democratic Party criticized in a press release on the 1st, "In the party-government-office consultation, it was decided to implement virtual asset taxation immediately from next year without any grace period," adding, "The government's basic responsibility and duty have been neglected, and simply collecting taxes because people make money means 'the people do the tricks and the government takes the money.'"

He further pointed out, "It is natural to tax where there is income, but there is no taxation without protection." He cited examples where proper protection was not provided: △the government did nothing when exchanges arbitrarily listed and delisted virtual assets △the Financial Supervisory Service failed to properly monitor market manipulation by influential groups △investigations into illegal multi-level marketing companies and overseas remittance firms have not been properly conducted.