People Power Party pushes for a full review of crypto taxation… “Double taxation must be resolved”

The leadership of the People Power Party has signaled the possibility of a full review of the virtual asset (cryptocurrency) taxation regime. The party says the tax framework should be refined in line with global standards and that controversy over double taxation stemming from the levy of income tax must be resolved.

On the 25th, the People Power Party held an on-site meeting on “improving the digital asset taxation system” at Coinone’s headquarters in Park One Tower, Yeouido, Seoul. Attendees included floor leader Song Eon-seok; Jeong Jeom-sik, chair of the party’s Policy Committee; Kim Eun-hye, senior deputy floor leader for policy; other party leaders; delegations from the five major won-based exchanges (Upbit, Bithumb, Coinone, Korbit and Gopax); and officials from the Digital Asset eXchange Alliance (DAXA).

In opening remarks, floor leader Song Eon-seok pointed to what he called the irrationality of the current tax structure. “With the number of virtual-asset investors exceeding 13 million, it is important to set the policy direction,” he said. “The US treats virtual assets as commodities and is building regulations accordingly. I think we should sufficiently take that into account in Korea as well.”

He added, “Korea treats (virtual assets) as goods under the Value-Added Tax Act and taxes them. Imposing income tax on top of that could amount to double taxation,” and said, “When virtual-asset taxation is implemented, issues of fairness could be raised. We will prepare legal and policy responses reflecting voices from the field.”

Kim Eun-hye, the senior deputy floor leader, then took the microphone to criticize the government’s regulation-centered policy stance.

“If a fish grows, you have to change the tank, but the current taxation direction is like telling it to cut off its fins instead,” she said, adding that “the government’s approach to the virtual-asset market is overly skewed toward regulation.” She added, “We will ensure tax fairness so that the market does not shrink while protecting investors and young people.”

Park Soo-young, secretary of the National Assembly’s Strategy and Finance Committee, also said, “It seems the government’s preparations for taxation may not be sufficient,” pointing out that “infrastructure building and institutional improvements are inadequate ahead of implementation.” Jeong Jeom-sik, chair of the Policy Committee, said, “Today’s meeting is not a place for the ruling party to deliver its views unilaterally, but a place to reflect the industry’s suggestions in policy and legislation,” adding, “Please share your opinions candidly.”