Exclusive: Democratic Party, Government to Hold Oct. 28 Virtual-Asset Tax Meeting, Leaning Toward Delay

South Korea’s government and the Democratic Party will hold a policy meeting at the National Assembly on Oct. 28 to decide whether to delay taxation on virtual assets.

A senior Democratic Party official told Korea Business News TV after a closed-door general meeting of lawmakers on Oct. 27 that the party would discuss the various views it has received on virtual-asset taxation at the meeting.

Another party official said the Democratic Party has effectively settled on postponing the tax and plans to deliver its final position to the government on Oct. 28.

The virtual-asset tax was originally due to take effect in 2022, but has been postponed three times because of concerns about investor protection and shortcomings in the tax framework. Under the plan, a 22% tax rate would apply to annual income from transfers or lending of virtual assets above a basic deduction of 2.5 million won ($1,810).

The tax is scheduled to take effect in January next year, but another delay appears increasingly likely given unresolved institutional issues and public sentiment among younger voters.

The presidential office has also been weighing another postponement of virtual-asset taxation and reviewing several options, according to the report.

The Oct. 28 party-government meeting on virtual assets will include key government officials, including Lee Hyoung-il, deputy prime minister and finance minister, as well as senior Democratic Party policymakers.

Seong Nak-yoon, Korea Business News TV reporter nyseong@hankyungtv.com

Jeong Jae-hong, Korea Business News TV reporter jhjeong@hankyungtv.com