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

The leadership of the People Power Party signaled the possibility of a sweeping review of the virtual asset (cryptocurrency) taxation regime. The party argues that the tax framework should be refined to align with global standards and that the controversy over double taxation arising from the imposition of income tax must be addressed.

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, Policy Committee Chair Jung Jeom-sik, and senior floor spokesperson for policy Kim Eun-hye, along with delegations from the five major won-denominated exchanges (Upbit, Bithumb, Coinone, Korbit and Gopax) and officials from the Digital Asset eXchange Alliance (DAXA).

In opening remarks, Song pointed to what he called the irrationality of the current tax regime. “With the number of virtual asset investors now exceeding 13 million, setting the policy direction is important,” he said. “The United States regards virtual assets as commodities and is crafting regulations. I think we should sufficiently take such factors into account in Korea as well.”

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

Kim Eun-hye, who took the microphone next, criticized the government’s regulation-centric policy stance.

“If a fish grows, you have to change the fishbowl, but the current taxation direction is more like telling it to cut off its fins,” she said, arguing that “the government’s attitude toward the virtual asset market is overly tilted toward regulation.” She added, “We will secure tax fairness so that the market does not contract, while protecting investors and young people.”

Park Soo-young, secretary of the National Assembly’s Strategy and Finance Committee, also said, “I’m not sure the government’s preparations for taxation are sufficient,” adding that “infrastructure building and institutional improvements are inadequate ahead of implementation.” Policy Committee Chair Jung said, “Today’s meeting is not for the ruling party to deliver views unilaterally, but to reflect the industry’s suggestions in policy and legislation,” and added, “Please share your candid opinions.”