Hong Nam-ki, Deputy Prime Minister for Economic Affairs, is attending the National Assembly's Public Accounts Committee's audit of the Ministry of Economy and Finance held at the National Assembly on the 20th, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@
[Sejong=Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated on the 20th during the National Assembly's Planning and Finance Committee audit, "There is absolutely no problem with taxing income from virtual assets starting next year."
Deputy Prime Minister Hong made this remark in response to a question from Yoo Kyung-jun, a member of the People Power Party, who asked whether there were any issues with the infrastructure for virtual asset taxation. Hong also explained, "There are many cases in other countries where securities transaction tax and capital gains tax on stocks are imposed simultaneously," adding, "It is inevitable to impose both income tax and transaction tax together to prevent market distortions such as foreign stock capital gains."
He further added, "Since the introduction of the Financial Investment Income Tax (Geumtu Tax) has been announced alongside a significant reduction in transaction tax, I believe it is appropriate to proceed in the direction that has been decided."
The government has planned to impose a tax rate of 20% (25% on amounts exceeding 300 million KRW) on capital gains from stocks exceeding 50 million KRW starting in 2023, while reducing the securities transaction tax from 0.25% (as of 2020) to 0.15%.
Regarding this, Assemblyman Yoo Kyung-jun argued, "When the Geumtu Tax is implemented, there will be an issue of double taxation with both capital gains tax and transaction tax," and insisted, "To revitalize the capital market, if capital gains tax is implemented, the securities transaction tax should be abolished."
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