South Korea’s National Assembly will discuss the crypto taxation bill today, November 25, at 14:00 KST, during a session of the tax subcommittee. Representatives from both ruling and opposition parties will review the bill’s potential implications.
The Democratic Party reintroduced the crypto taxation bill last week, initially proposed in 2021. It aims to tax crypto investors with gains exceeding a specified threshold. The original threshold of 2.5 million won ($1,791) caused concerns, leading to revisions. The updated proposal raises the tax-free limit to 50 million won (approximately $35,919) and sets a 20% tax rate on gains beyond this amount.
Conflicting Views on Implementation
Jin Sung-joon, Chairman of the Democratic Party’s policy committee, confirmed plans to implement the bill in January 2025, rejecting further delays. He dismissed concerns over technical and logistical challenges.
However, Han Dong-hoon, leader of the ruling party, stressed the need to address young investors’ concerns and improve infrastructure for efficient tax collection. Dong-hoon argued against labeling crypto investments as speculative and advocated for recognizing virtual assets as legitimate tools for wealth accumulation.
Updated Tax Exemption Threshold Sparks Debate
The updated proposal raises the tax exemption threshold to 50 million won, offering relief to many retail investors. The Strategy and Finance Committee will discuss additional adjustments to the tax scope during a meeting on November 26.
Read also: Crypto Tax Evaders Face Crackdown in South Korea
The policy aims to benefit small investors, as most retail traders fall below the new threshold. Additionally, taxpayers without detailed records can claim up to 50% of the sale price as the acquisition cost, simplifying compliance.
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