PPP’s Bae Jun-young Urges Democratic Party to Decide on Crypto Tax Delay

South Korea’s ruling People Power Party urged the main opposition Democratic Party to quickly decide whether to delay taxation on virtual assets, or cryptocurrencies, which is scheduled to take effect in January.

Bae Jun-young, a People Power Party lawmaker, wrote in a Facebook post on Oct. 31 that taxation on virtual assets will begin on Jan. 1, 2027, even though issues of tax fairness and investor protection remain unresolved. Bae is the opposition-side floor member on the National Assembly’s Strategy and Finance Committee.

Bae first raised concerns about tax fairness between domestic and overseas exchanges. Domestic exchanges submit trading records to the National Tax Service, but income from overseas exchanges or peer-to-peer transactions is harder to track. He argued that would leave only compliant domestic investors bearing the tax burden.

He also pointed to the lack of a loss carryforward provision. An investor who loses 10 million won ($7,200) this year and earns 5 million won ($3,600) next year would still be taxed on next year’s gains. Bae added that lawmakers established the tax framework in 2020 and delayed it three times, but problems involving overseas transaction data and support for tax filing remain unresolved.

Bae also said preparations for the tax are insufficient. During a parliamentary audit, industry officials said exchanges would need at least six to nine months to build taxation systems even after the National Tax Service finalizes its notice. He called on the government to disclose the status of its preparations.

He added that he had proposed putting the related bill before the tax subcommittee on Nov. 2, but had yet to receive a response from the Democratic Party. He urged the party to respond immediately and decide whether to delay the tax before it takes effect.