According to a report by “The Block,” Jeong Jung-hoon, Deputy Director of the Tax and Customs Office at the South Korean Ministry of Economy and Finance, stated at an earlier policy briefing this week that the South Korean parliament should discuss whether to include cryptocurrency gains in the plan to abolish the capital gains tax on financial investments.
Local media “ZDNet” reported on Wednesday (17th) that Jeong made the above comments in response to public inquiries about whether cryptocurrency taxes should be abolished along with financial investment taxes. The government led by South Korean President Yoon Suk-yeol intends to abolish taxation on financial investments such as stocks and funds to support citizens’ wealth accumulation and financial planning.
South Korea’s cryptocurrency tax system is set to take effect on January 1, 2025, with taxpayers earning over 2.5 million Korean won (approximately $1,865) in cryptocurrency profits required to pay a 22% tax, mirroring the taxation system for financial investment gains that will also be implemented on the same day.
Reportedly, Jeong stated that the South Korean government plans to submit an income tax law amendment related to financial investment taxes at the end of January or early February.
The South Korean parliamentary elections are scheduled for April 10, which may mean that current legislators have only a few months left to handle the proposed amendments.