Deputy Prime Minister Candidate Says Crypto Tax Burden Will Be Minimal for Most Investors

Economic Deputy Prime Minister and Finance Minister nominee Lee Hyung-il said that most cryptocurrency investors will not bear substantial tax burdens when virtual asset taxation is implemented in 2027.

According to the Korea Economic Daily, during a parliamentary confirmation hearing on Thursday, Lee stated that the government has delayed implementation until 2027 after discussions in the National Assembly this year. He cited that 85% of domestic cryptocurrency investors hold assets worth less than KRW 5 million (approximately USD 3,600), and with tax calculation methods including acquisition cost verification, allowable deductions, and an annual basic deduction of KRW 2.5 million, many investors may not face significant taxable amounts.

Lee noted that in cases where acquisition costs are difficult to prove, a portion of gains could be treated as allowable expenses, potentially limiting actual tax burdens. He added that starting virtual asset taxation now would cause less shock than expected, though further review is needed and discussions should continue through a parliamentary subcommittee.