Kim Bu-gyeom: "The Government Must Protect '3 Million' Virtual Asset Investors"

Prime Minister nominee Kim Boo-kyum is arriving at the Financial Supervisory Service Training Institute in Tongui-dong, Jongno-gu, Seoul, where the office for preparing the confirmation hearing has been set up, on the morning of the 28th. 2021.4.28 [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] Kim Boo-kyum, the nominee for Prime Minister, said on the 28th, "Since nearly 3 million people have entered the (virtual asset) market, it is the duty of the state and government to protect them so that innocent victims do not arise." This statement contradicts the government's existing position that virtual asset investors, unlike general financial products, are not subject to protection because they are not regulated by the government.

On the morning of the same day, Kim met with reporters on his way to the Financial Supervisory Service Training Institute in Jongno-gu, Seoul, and made this remark in response to questions about virtual assets. He said, "There needs to be a serious discussion about the entire (virtual asset-related) issue," adding, "Since there are people who see it as currency, those who see it as finance, and even those who say it has no substance, we need to organize our stance through serious internal analysis."

At the same time, considering the increasing number of investors, he emphasized that protecting them is the "government's duty." Regarding the enforcement of the Act on Reporting and Using Specified Financial Transaction Information, which requires exchanges to report to the Financial Services Commission to enhance transaction transparency starting this September, he said, "Please watch closely."

The authorities' position is not to recognize virtual assets as currency but to regard them as intangible assets with economic value. Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said at a meeting held the day before, "The Financial Services Commission's position is that it is difficult to see virtual assets as assets for productively gathering private funds like stocks or bonds defined in the Capital Market Promotion Act," adding, "Therefore, it is understood as an expression that they are not subject to regulation or protection."

Nevertheless, regarding the taxation policy to be applied from January next year, he emphasized, "Since gains from art transactions are also classified as 'other income' and taxed, it is inevitable to tax income from virtual asset transactions."

However, the political sphere, ahead of elections, is interpreting the issue differently considering the votes of the main investor group, the 2030 generation, so there is a considerable possibility that conflicts between the ruling party and the government may arise in the future. Ultimately, since the Office for Government Policy Coordination will mediate opinions from each ministry, the remarks of Kim, a "politician by background," are noteworthy.

Meanwhile, regarding the physical clashes between police and citizens at the THAAD (Terminal High Altitude Area Defense) base located in Seongju-gun, Gyeongbuk Province, Kim said, "At the very least, residents should understand the import of equipment for basic facilities such as accommodations for U.S. and Korean soldiers stationed there," adding, "If people block it by giving it excessive political meaning, what will happen to the soldiers? I appeal to the residents."

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