Deputy Prime Minister Candidate Says Crypto Tax Burden Minimal, No Major Shock

Deputy Prime Minister and Finance Minister nominee Lee Hyung-il predicted that the tax burden on virtual assets (digital assets) would be minimal, with no major shock to the market.

Speaking at a parliamentary committee hearing on Thursday, Lee stated, "I believe the tax burden on digital assets will be minimal, and starting now will not cause as much shock as expected."

The nominee's reasoning is based on statistical analysis showing that 95% of digital asset investors hold assets worth less than 5 million won. If they cannot prove acquisition costs, up to 50% of profits may be treated as necessary expenses. This would mean a profit of 2.5 million won on a 5 million won holding, with a basic deduction of 2.5 million won, resulting in minimal tax burden for small investors. Additionally, he noted that past price increases before the tax implementation will not be subject to taxation.

On the same day, Kim Sang-hoon of the People Power Party remarked that the digital asset market is not yet mature and should align with fairness principles regarding financial investment income tax, adding concerns about potential capital outflows if taxes are implemented too hastily.