Rep. Song Eun-seok Calls for Abolition of Cryptocurrency Income Tax Amid Global Market Concerns

Rep. Song Eun-seok of the People Power Party has argued that virtual asset (cryptocurrency) income tax should be abolished, citing tax fairness with equities and concerns over potential capital outflow to overseas markets.

On November 16, Rep. Song stated on Facebook that 'virtual asset income tax should also be abolished under the same principle' and emphasized the need for tax equity between virtual assets and stocks.

The lawmaker noted that the virtual asset market operates as a global single market with minimal border restrictions, warning that imposing income tax could lead to significant capital moving to jurisdictions like Singapore and Hong Kong.

This call comes amid government plans to allocate increased tax revenue to a future response fund. Rep. Song criticized this approach, arguing that rising tax revenues should first be used to reduce national debt or alleviate taxpayer burdens rather than being accumulated in the fund.

He highlighted that next year's national debt will reach 151.98 trillion won, with tax revenue increasing by 19.42 trillion won, while national debt is projected to rise by an additional 10.6 trillion won. He argued it is difficult to justify further debt accumulation despite the significant tax increase.

Rep. Song also pointed out that next year's income tax will amount to 180 trillion won, a 36% increase of 48.1 trillion won from 2026's 132 trillion won. He stressed that the government should prioritize returning increased tax revenue to citizens through measures like reducing or refunding personal income tax.

'The government shouldn't just fill its fiscal wallet because tax revenues have risen,' he said, adding that taxpayer money should first be used to reduce national debt and lower citizens' tax burden. He urged halting the establishment of a future response fund and focusing on tax reforms aimed at reducing overall taxpayer burdens, including personal income tax.