Jung Jeom-sik: "Virtual Asset Taxation, Confusion is Young Investors' Burden... Preparation Must Be Sufficient"

Jung Jeom-sik: "Virtual Asset Taxation, Confusion is Young Investors' Burden... Preparation Must Be Sufficient"

Policy consultation with 5 digital asset exchanges... "Taxation standards and fairness must be examined"

People Power Party floor leader Jung Jeom-sik said on the 21st, regarding the virtual asset income taxation scheduled for January next year, that "if we rush without preparation, the confusion and burden will inevitably fall on young investors."

Floor leader Jung held a 'Policy Consultation for Improving Digital Asset Taxation System' with representatives from 5 digital asset exchanges at the National Assembly today, stating, "We need to meticulously re-examine whether systems and frameworks are sufficiently prepared to fairly and accurately tax digital assets."

He then pointed out, "There are cases where it is difficult to accurately confirm acquisition costs and transaction details, and it has not yet been clearly decided what criteria will be used to reflect income and losses arising from new forms (of digital assets)."

Furthermore, he emphasized, "In a situation where the financial investment income tax has already been abolished, it is necessary to examine whether applying the current tax system to digital assets aligns with fairness."

In particular, he pointed out, "In a reality where soaring prices, a tight job market, and the difficulty of even affording a home with only earned income prevail, numerous young generations are participating in the digital asset market." He added, "If we ignore the reality of these young people and rush taxation without sufficient preparation, that confusion and burden will inevitably fall on young investors."

Policy Committee Chairperson Lim Lee-ja mentioned, "There are cases where it is difficult to accurately confirm when and for how much virtual assets that entered domestic exchanges from personal wallets were purchased." She added, "To collect taxes, it must be clear what is being taxed."

She then added, "The situation has changed significantly since the virtual asset taxation system was first designed. The financial investment income tax that was pursued at the time has been abolished." She concluded, "The issues raised regarding tax fairness among assets must also be thoroughly examined."

Oh Se-jin, chairperson of the Digital Asset Exchange Joint Council, pointed out that "virtual asset income taxation has undergone several reviews and postponements since its initial discussion, and controversy continues even now, ahead of its implementation next year." He added, "I believe there is a consensus that this system is an issue that needs to be handled cautiously."

Chief Floor Spokesperson Choi Soo-jin met with reporters after the consultation and conveyed that "an opinion was raised about why it is necessary to push ahead with this at a time when a large amount of excess tax revenue has been collected, leading to thoughts on how to use it."

He also emphasized, "The government previously tried to bring foreign assets into the country through single-item leverage, but conversely, there is a high possibility that funds will flow out overseas." He concluded, "It is still the party's stance that taxation on digital assets is unreasonable."

He then added, "The National Assembly's Political Affairs Committee has prepared a basic law (for digital assets) and will hold a public hearing soon."