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The South Korean Democratic Party confirms that it will implement a crypto-tax by January 2025.
- Democratic Party policy committee chairman, Jin Sung Joon , dismisses concerns over challenges.
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The party rejected the suggestion that the tax implementation be suspended for two years.
Jin Sung-joon has confirmed that cryptotaxation will start in January 2025. In an interview with MBC Radio Attention View, he addressed concerns about technical and pragmatic challenges. He emphasized that the government is committed to moving forward without further delay.
“Virtual assets are not a significant factor in the real economy,” the Chairman said, addressing concerns about the implementation of crypto tax in South Korea. He said that the legislation, which was first proposed four year ago and twice suspended, should not be further delayed to ensure legal predictability and stability. The government and ruling party were strongly against suggestions to suspend the tax implementation for two years.
South Korea’s Revised Crypto Tax Scheme
The updated legislation introduces an additional 2% tax on local gains above 50 million Korean won ($35,919). This replaces an earlier proposal to tax gains over 2.5 million won ($1,791) which was met with strong opposition from investors and twice delayed.
Most retail investors are now excluded from taxation under the new policy. Taxpayers with incomplete records may also claim 50% of the purchase price as their acquisition costs. The revised scheme is designed to address investor concerns and improve market confidence.
Read about the crackdown on crypto tax evaders in South Korea
Jin said that despite these favorable conditions, tracking coin transactions at foreign exchanges can be difficult. He added that the government can still tax transactions that are identified on domestic exchanges.
He said that the Organisation for Economic Co-operation and Development will begin exchanging data on cryptocurrency transactions among its member nations in 2027. This could improve tracking efforts worldwide.
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