South Korean Lawmaker Proposes Counting Crypto, Overseas Assets in Basic Pension Eligibility

A bill has been proposed in South Korea to include virtual assets, or cryptocurrencies, and overseas financial assets in property assessments used to determine eligibility for the basic pension.

Pinpoint News reported on June 29 that Rep. Seo Young-seok of the Democratic Party, a member of the National Assembly’s Health and Welfare Committee, introduced an amendment to the Basic Pension Act. The bill would add cryptocurrencies and overseas financial assets above a set threshold to the assets used in calculating recognized income for the pension.

Under the current system, recognized income is calculated mainly from general assets such as land, buildings and homes, as well as domestic financial assets including deposits, savings, stocks and insurance. That has led to criticism that large overseas financial holdings or crypto assets are not adequately reflected in reviews of basic pension eligibility.

According to a March audit report on the operation and management of elderly welfare programs released by the Board of Audit and Inspection, 624 people age 65 or older had reported overseas financial assets exceeding $362,000 as of 2023. Of those, nine were found to be receiving the basic pension.

The amendment would add cryptocurrencies and overseas financial assets exceeding $362,000, the reporting threshold under the Law for the Coordination of International Tax Affairs, to the assets used in calculating recognized income.

It would also require basic pension applicants to submit consent forms allowing access to information on their crypto holdings and overseas financial accounts. The bill would also establish a legal basis for the health and welfare minister to request related data from virtual asset service providers and the National Tax Service.

The Ministry of Health and Welfare said in April that it would move to include overseas financial assets and cryptocurrencies in calculating recognized income for the basic pension.

If the amendment passes the National Assembly, cryptocurrency and overseas financial asset holdings will be reflected in property assessments during the screening process for basic pension eligibility.