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Crypto Tax Debate Heats Up in South Korea: What’s at Stake?

Author: Content Editor
The South Korean National Assembly has postponed a plenary session scheduled for November 26 due to political conflicts surrounding the proposed taxation of virtual assets. The ruling People Power Party (PPP) and the Democratic Party of Korea are in disagreement, with the DPK wanting to adopt the crypto tax as planned and the PPP requesting a two-year delay. Other issues, such as inheritance tax policies, have also contributed to the session's cancellation. The DPK has proposed raising the virtual asset tax exclusion limit to 50 million won, affecting only 3,500 high-net-worth individuals among the country's estimated 8 million crypto investors. However, internal disagreements remain within the Democratic Party, and the decision on crypto taxation will depend on further discussions and consensus. The Democratic Party plans to implement the virtual asset tax by January 2025, but there are technical and logistical concerns that need to be addressed. Ruling party leader Han Dong-hoon emphasizes the need to build infrastructure for efficient tax collection and to recognize virtual assets as legitimate investment tools.

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