South Korea to Hear Crypto Exchange Views Before January Tax Launch at Oct. 19 Meeting

South Korea’s government and cryptocurrency exchanges will discuss digital-asset taxation, which is scheduled to take effect in January next year. The closed-door meeting comes as calls are mounting in political circles to delay the rollout.

According to the digital-asset industry on Oct. 17, a private meeting is scheduled for the morning of Oct. 19 with officials from the Ministry of Economy and Finance and exchange executives. First Vice Finance Minister Kwon Dae-young is expected to attend, along with other government officials and the Digital Asset eXchange Alliance, or DAXA.

The government’s position remains to proceed with taxation next year. Under current law, a 22% tax including local levies would be imposed on annual virtual-asset income above 2.5 million won ($1,810). The National Assembly, however, has received competing amendment bills ranging from repeal to changes in the implementation schedule.

Calls for a delay have emerged not only from the opposition but also from the ruling party. Fourteen lawmakers, including Democratic Party lawmaker Park Min-kyu, proposed a revision that would begin taxation two years after the Crypto-Asset Reporting Framework, or CARF, takes effect. The proposal is based on the view that South Korea should align taxation with conditions that would allow it to secure overseas transaction data, given that the US is scheduled to join CARF in 2029. The People Power Party has also submitted a repeal bill and a proposal to delay implementation by two to three years, arguing that taxation is premature.

A contrasting view has also been clearly voiced within the political sphere that the plan should proceed as scheduled. Democratic Party lawmaker Oh Ki-hyoung said during a parliamentary audit on Oct. 6 that “the original intent of the National Assembly’s decision-making was to implement it immediately once preparations were complete.” Lawmaker Jung Tae-ho said on Oct. 13 that “there is a clear justification for taxation because digital-asset taxes have already been postponed three times since the system was introduced.”

The next venue for debate will be the tax subcommittee of the National Assembly’s Strategy and Finance Committee in November. Deliberations over amendments to the Income Tax Act are expected to center on the timing of implementation and the government’s level of preparedness. Issues raised during the parliamentary audit, including loss carryforwards and how to secure records of overseas transactions, also remain unresolved.