Han Dong-hoon Says South Korea Should Again Delay Digital-Asset Tax, Pass Phase-Two Legislation First

Independent lawmaker Han Dong-hoon said South Korea should once again delay a digital-asset tax scheduled to take effect in January next year, arguing that investor-protection measures and tax infrastructure must come first.

In a social media post on September 19, Han wrote that digital-asset taxation should not be rushed. He said the government should not proceed while tax revenue is running above target and preparations for fair taxation remain incomplete.

Han also criticized finance minister nominee Lee Hyoung-il for saying the tax should be implemented as scheduled, arguing that the order of priorities is wrong. What matters more than taxation, Han wrote, is creating an environment in which citizens who hold coins are properly protected.

He said rules should first be put in place to classify digital assets and set issuance requirements, as well as supervisory authorities and standards. He added that debate over the so-called second-phase digital-asset legislation, which should include those provisions, has repeatedly stalled despite more than a year of discussions.

Han also argued that the tax infrastructure is still lacking. South Korea does not yet have the systems needed to properly tax digital assets, he wrote. With extra tax revenue flowing in because of a semiconductor boom, the move is not aimed at raising more revenue, he added.

He said virtual-asset taxation should not be introduced now and must be postponed again. If the Democratic Party government is determined to impose the tax, it should debate the matter rather than force it through with its numerical majority, he added.