South Korea's virtual asset tax faces obstacles: the government insists on implementation in January next year, while the opposition party is pushing for the repeal of the bill.

CoinFeed reported on May 8th that, according to ZDNet, the South Korean government plans to tax virtual assets starting in January next year, but faces opposition from the opposition parties, increasing policy uncertainty. Moon Kyung-ho, head of the Income Tax Division of the Ministry of Finance and Economy, formally stated for the first time at a parliamentary debate that the government will proceed with the taxation of virtual assets as planned on January 1st next year, emphasizing that "all income must be taxed." Under the current tax law amendment, income from the transfer or lending of virtual assets exceeding 2.5 million won is subject to a 22% tax rate. However, the opposition People Power Party argues that taxing only virtual assets in the absence of a financial investment income tax is unfair and is pushing for a bill to abolish the virtual asset income tax. This bill has been submitted to the National Assembly's Finance and Economic Planning Committee and will be discussed by the Tax Subcommittee.