South Korean Lawmaker Calls for Crypto Tax Repeal Over Loss Rules

South Korea's planned tax on virtual assets has been met with opposition from within its own ruling party. People Power Party lawmaker Park Soo-young called for the government to scrap the tax, arguing that it is unfair and would not allow investors to carry forward losses.

In a video posted on his YouTube channel, 'Park Soo-young's Economy TV,' Park stated that the tax plan holds 13 million digital-asset users hostage. He contrasted this with the repeal of the financial investment income tax, saying it was unfair to treat digital assets differently.

Park pointed out that investors would not be able to deduct losses from previous years, making it difficult for them to recover from market downturns. He also argued that the tax would drive money away from South Korea's stock market and into overseas crypto markets.

According to Park, about 124 trillion won ($89.9 billion) flowed to overseas crypto exchanges from January through September last year. The government has stated its intention to proceed with the tax plan as scheduled for next year, despite calls within the ruling party to abolish or delay it.