Lee Hyoung-il Says Crypto Tax Guidelines to Be Announced This Year, Backs ‘Other Income’ Classification

Lee Hyoung-il, South Korea’s nominee for deputy prime minister and finance minister, said detailed tax guidelines for virtual assets will be announced before year-end ahead of the planned Jan. 1 implementation of crypto taxation.

The Kyunghyang Shinmun reported on Sept. 13 that, in written responses submitted to the National Assembly ahead of his Sept. 15 confirmation hearing, Lee said the specific standards would be published in a National Tax Service notice within the year so taxpayers would face no difficulty in filing.

Lee also said the current tax framework, which classifies income from virtual assets as other income, is appropriate. He said that classification would allow a taxpayer-friendly system, including a basic deduction and a single tax rate, while reducing compliance costs under comprehensive income taxation.

He also said taxation of virtual assets would help improve fairness across asset classes, noting that capital gains and transaction taxes already apply to major shareholders, overseas stocks and unlisted shares.

On whether to introduce a capital gains tax including the financial investment income tax, Lee said the matter should be reviewed only after financial markets are sufficiently stable. On inheritance and gift taxes, he said further public input and broader social discussion are needed, as views remain divided between easing the tax burden and preserving tax fairness.