South Korea’s PPP Says Government Must Apologize After 2-Year Delay of Crypto Tax to 2029

South Korea’s opposition People Power Party said the government should apologize for policy confusion after deciding to seek a two-year delay in taxation of virtual assets, or cryptocurrencies.

Members of the party’s fiscal and economic planning committee said in a statement on November 5 that the government had announced plans to push back virtual-asset taxation by two years to 2029. They welcomed the move, saying it showed the government had accepted the need to ensure tax fairness and protect investors, positions the party had long advocated.

The party added that the government and ruling party should first apologize to investors who had faced uncertainty because of the policy confusion. It said the Lee Jae-myung administration had pushed ahead with implementing the tax without resolving related issues, while the Democratic Party had refused to participate in reviewing the bill and only proposed a delay to the government just before the measure was set to take effect. As the government and ruling party shifted responsibility, public confusion only deepened, it said.

Earlier on November 5, Deputy Prime Minister Lee Hyoung-il, who also serves as finance minister, said at a briefing at the Government Complex Seoul that the government would consult with the National Assembly on a plan to postpone taxation of virtual-asset income for two years. He said the government would allow additional time for preparations, citing possible disadvantages for the domestic market and institutional changes stemming from the enactment of the Digital Asset Act. Lee also said the government would push to introduce a carryforward deduction for losses on virtual assets.