Lim Yi-Ja Urges Korea to Delay Crypto Tax Rollout
South Korea's PPP chair warns that enforcing virtual-asset taxes without full institutional readiness will burden investors.
Key points
- Lim Yi-ja advises against rushing virtual-asset tax implementation due to missing institutional systems.
- Retail investors in domestic stocks currently pay no capital gains tax, creating a fairness issue.
- The Digital Asset Basic Act must advance alongside the tax framework to avoid investor burden.
Lim Yi-ja, the policy committee chair of the People Power Party, stated on September 21 that South Korea must not rush to implement virtual-asset taxes. She argued that the current institutional framework is insufficient to support such a levy, which would create unnecessary confusion for market participants.
The politician emphasized that authorities lack the necessary systems to verify basic tax data, such as purchase prices. Without these mechanisms, taxpayers cannot accurately predict their liabilities, making the current tax design flawed according to her assessment.
Tax Fairness Across Asset Classes
Lim highlighted a disparity in how different investment types are treated under current rules. Capital gains earned by retail investors in domestically listed stocks remain untaxed, while virtual-asset investment income is still slated for taxation. This inconsistency requires a thorough review to ensure equitable treatment across all asset classes.
She noted that the financial investment income tax was previously abolished, leaving a gap in the regulatory structure. Consequently, the existing plan to tax crypto gains appears misaligned with the broader fiscal policy regarding other financial instruments.
Legislative Timing and Market Burden
Lim Yi-ja stated that the Digital Asset Basic Act should progress in step with the tax system. She warned that if taxation is enforced before the legal and institutional foundations are complete, the resulting burden will fall directly on investors.
According to reporting by bloomingbit.io, the chair intends to consult with industry stakeholders to identify necessary improvements. She stressed that a rushed rollout would inevitably create market instability and administrative chaos for participants.
