Virtual Asset Deduction Limit Raised to 50 Million KRW Implemented
Commercial Law Forum Held with Business Community, Small Investors, Scholars, and Organization Representatives
Jin Seong-jun, the Policy Committee Chair of the Democratic Party of Korea, clearly stated the position to raise the tax deduction limit for virtual asset investment income to 50 million KRW and implement it starting next year.
After the party's expanded executive meeting held at the National Assembly that day, Chair Jin said, "Raising the deduction limit from 2.5 million KRW to 50 million KRW and implementing virtual asset taxation was a pledge of the Democratic Party during the general election," adding, "This is a promise to the people and is considered a party principle that is difficult to overturn recklessly." He added, "I have reported to the leadership that I will approach the tax law review based on this principle, and there are no other discussions."
There was no disagreement within the leadership regarding the policy to impose income tax on virtual assets by raising the deduction limit.
Chair Jin explained, "There was a discussion within the party leadership about whether it is technically and practically possible to tax virtual assets," but added, "It is already possible to obtain taxable transaction details and corresponding income mainly through domestic coin exchanges, so there is no technical issue." He continued, "Transactions using overseas exchanges are difficult to track without voluntary reporting, but the OECD will start sharing related information from 2027, making taxation possible from then on."
The Democratic Party plans to hold a subcommittee meeting of the National Assembly's Strategy and Finance Committee on the 25th to approve an amendment to the Income Tax Act that raises the deduction limit for virtual asset trading profits to 50 million KRW.
Regarding discussions related to the Commercial Act, he said, "There are differences of opinion between the business community and general investors, so we plan to hold a public debate inviting representatives or experts representing both sides," and added, "We also propose that related organizations, the business community, and the Small Investors Solidarity participate in the public debate." The debate is planned to be held "within next week, and the practical work will be handled and conducted by the Korea Stock Market Revitalization TF."
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