Nowungrae "Next Year's Taxation is 'Premature'... Cryptocurrency is Closer to Stocks than Lotto"

No Woong-rae, a member of the Democratic Party of Korea, is questioning at the National Assembly's Environment and Labor Committee during the audit of the Central Environmental Dispute Mediation Committee and the National Institute of Environmental Research on October 14 last year.
[Image source=Yonhap News]

[Asia Economy Reporter Kim Soyoung] Rep. Noh Woong-rae of the Democratic Party of Korea stated that the proposed amendment to the Income Tax Act, which classifies cryptocurrency as 'other income' and imposes a 20% capital gains tax starting next year, "must be immediately revised."

On the 27th, Rep. Noh wrote on his Facebook, "A knife can either kill or save a person depending on who holds it," expressing this view.

He pointed out, "Cryptocurrency is closer to stocks than to a lottery," adding, "In the current proposed amendment to the Income Tax Act by the government, cryptocurrency is treated as temporary incidental other income. However, in reality, cryptocurrency trading is very similar to stock trading, which involves repetitive transactions rather than a lottery."

He continued, "Therefore, it should be converted to the capital gains taxation method for financial investment income like stocks," urging, "It should be classified as financial investment income rather than other income, increasing the combined deduction to up to 50 million KRW, and the taxation timing should be aligned with the introduction of stock capital gains tax in 2023."

He predicted, "If this is done, a progressive tax structure will be established where those with larger investment profits pay more taxes, and most small- to medium-scale investors will pay little or no tax."

Next, Rep. Noh criticized, "Taxation next year is premature," stating, "At a time when market transparency and stability must first be secured, taxation is being pushed forward, but the related infrastructure is still insufficient."

He said, "It is practically difficult to tax cryptocurrencies not listed domestically, and when purchasing in-kind rather than cash withdrawal or holding in personal wallets, it is hard to accurately calculate capital gains, which is likely to cause tax resistance."

He added, "I request that negative prejudices against blockchain and cryptocurrency technology be discarded, that it be developed as a pillar of future industry, and that price manipulation groups and false disclosures be cracked down on to realize minimum investor protection."

This content was produced with the assistance of AI translation services.