South Korea’s Virtual Asset Tax Faces Opposition as Government Maintains 2026 Implementation Plan

Huo Xing Finance reports, according to ZDNet, that the South Korean government plans to impose taxes on virtual assets starting in January next year, but faces opposition from the opposition party, increasing policy uncertainty. Moon Kyung-ho, Director of the Income Tax Division at the Ministry of Economy and Finance, made his first official statement during a parliamentary hearing, affirming that the government will proceed as planned to tax virtual assets beginning January 1 next year, emphasizing that “income must be taxed.” Under the current tax law amendment, gains from the transfer or lending of virtual assets exceeding 25 million KRW are subject to a 22% tax rate. However, the opposition People Power Party argues that taxing virtual assets alone while eliminating the financial investment income tax is unfair, and is advancing a bill to abolish the virtual asset income tax. This bill has been submitted to the National Assembly’s Committee on Economy and Finance and will be discussed by its Tax Subcommittee. Analysts suggest that, ahead of next year’s local elections, the ruling party may engage in discussions to delay or repeal the tax in an effort to gain support from younger voters.