Rep. Park Min-kyu Calls for Delay to Virtual-Asset Tax, Urges Swift Passage of Digital Asset Framework Act

Rep. Park Min-kyu of the Democratic Party of Korea called for delaying the rollout of virtual-asset taxation, saying South Korea should first establish an institutional framework for the domestic industry.

At a forum held on November 2 at the National Assembly Library in Seoul's Yeouido district, Park said the Digital Asset Framework Act should be enacted promptly before virtual-asset taxes are implemented.

He expressed concern that starting taxation in January next year, before the domestic digital-asset market has a sufficiently developed legal and institutional framework, could have a negative impact across the industry.

Park also highlighted shortcomings in the system for collecting information on overseas virtual-asset transactions. If authorities cannot properly track trading records of users on foreign exchanges, he said, the tax burden could fall disproportionately on investors using domestic exchanges.

He also raised concerns that a rushed tax rollout could push domestic investors toward overseas platforms. In that case, the local virtual-asset market could contract and, over the longer term, the government's tax base could also weaken.

Park stressed that lawmakers should first build a legal framework to support the growth of the virtual-asset industry and protect investors. He described passage of the Digital Asset Framework Act as an urgent legislative task and said the timing of tax implementation should be reconsidered.