Korean parliamentarians proposed to postpone the taxation of virtual asset income by three years to 2030

On 10 August, members of the Korean National Forces Party (KNFP), Zheng Cheng Guo, proposed a bill to postpone the implementation of the virtual asset income tax by three years, from 1 January 2027 to 1 January 2030. The parliamentarian noted that by postponing the implementation date until the completion of a comprehensive review of the relevant systems, including virtual asset taxation, a safeguard was in place to enhance taxpayers ' expectations and prevent system confusion. According to the current provisions, as of 1 January next year, income from the transfer or borrowing of virtual assets will be classified as “other income” and subject to income tax. Thus, the portion of the annual profit exceeding 2.5 million won is subject to a 22 per cent tax, including 20 per cent of other income tax and 2 per cent of local income tax. At a time when recent stock-market turmoil and soaring real estate prices have triggered a concentrated public attack on the Government and the ruling party, the National Forces Party appears to be trying to garner public support by actively proposing legislation to safeguard the interests of virtual asset market investors. The National Force Party (NFP) has been in opposition to the Government for the abolition of this tax。