PPP’s Lim Yi-ja Says Rushing Crypto Tax Rollout Would Leave Investors Confused

Lim Yi-ja, policy committee chair of the ruling People Power Party, said on September 21 that South Korea should not move hastily to implement virtual-asset taxes before the system is ready.

Speaking at a policy roundtable at the National Assembly on ways to improve the digital-asset tax system, Lim said concerns persist in the market that the institutions and systems needed to enforce virtual-asset taxation are still not fully in place.

“To levy a tax, it must be clear what is being taxed, and taxpayers must be able to predict how much they owe,” Lim said. She added that authorities still lack an adequate system to verify basic tax data, including the purchase price needed to calculate gains and determine tax liabilities. In that respect, the current virtual-asset tax system requires closer scrutiny.

Lim also said tax fairness across asset classes should be taken into account. The financial investment income tax, which was pushed in tandem when the virtual-asset tax system was first designed, has since been abolished, she said. At present, capital gains earned by retail investors trading domestically listed shares on exchange are not taxed. By contrast, taxation of investment income from virtual assets is still planned, making it necessary to fully examine concerns over fairness across asset classes.

She also referred to the Digital Asset Basic Act, which is now under legislative discussion. Work to establish the legal nature of digital assets and create a basic institutional framework should proceed in tandem with the tax system, Lim said.

“If taxation is implemented first when institutions and systems are not fully prepared, the resulting confusion and burden will inevitably fall on investors and the market,” Lim said, adding that she would listen to the industry and make improvements where needed.