Korean Opposition Seeks Delay of Crypto Tax Amid Fears of Capital Flight

The People Power Party in South Korea is calling for the government to delay or repeal the planned virtual-asset tax system, set to take effect in January 2027. The party's floor leader, 郑点植 (Jeong Jeom-sil), argued that the tax could drive capital away from the country and into locations like Hong Kong and Singapore.

郑 said that excess tax revenue is temporary, while government spending becomes increasingly difficult to reduce once expanded. He emphasized the importance of reducing the public's tax burden, suggesting that it should take priority over establishing a 'Future Response Fund' financed through surplus tax revenue.