DPK Joins Calls for Delay on Crypto Taxation Amid Readiness Concerns

The ruling Democratic Party of Korea (DPK) has joined opposition lawmakers and industry groups in calling for a delay on cryptocurrency taxation. The tax is scheduled to take effect on January 1, 2027, but concerns over the readiness of the tax system have grown as the deadline approaches.

Rep. Min Byung-duk, a senior member of the DPK's policy committee, said that taxation should be pushed back until after the passage of the Digital Asset Basic Act. He pointed to difficulties in tracking income from overseas exchanges and the lack of a system for carrying forward investment losses.

The DPK's calls for delay come as the government maintains that the tax should be implemented as scheduled. Finance Minister Lee Hyoung-il backed the planned rollout, saying that 85% of investors hold virtual assets worth less than 5 million won ($3,670), and most will face a small tax burden or fall below the tax threshold.

A survey by Tiger Research found that 73.7% of 2,423 virtual asset investors in Korea opposed the taxation plan. The Digital Asset eXchange Alliance (DAXA) has also called for a delay in taxation, citing pending issues such as infrastructure for determining acquisition costs and tax rules for different types of transactions.