- South Korea’s proposal to delay the crypto taxation bill is postponed amid political turmoil.
- President Yoon Suk Yeol’s martial law declaration and subsequent impeachment led to chaos.
- If the bill is not amended, the taxation will take effect on January 1, 2025, as scheduled.
South Korea’s proposal to delay crypto taxation and abolish financial investment income tax has been postponed due to the country’s prevailing impeachment crisis. Despite having solid support from investors and the opposition party, the bill’s progress has been halted amid the worsening political situation. If the taxation delay bill is not amended, the financial investment income tax and virtual asset tax will take effect on January 1, 2025, as scheduled.
Recently, South Korea reintroduced a crypto taxation bill, originally launched in 2021 and delayed twice. The bill intends to collect 20% tax from crypto gains exceeding 50 million Korean won (approximately $35,919). This threshold is significantly higher than the initial 2.5 million won ($1,791), addressing investor concerns.
Korean Democratic Party’s policy committee Chairman, Jin Sung-joon, confirmed that the taxation would begin in January 2025. Later, the opposition Democratic Party pledged to postpone the bill to 2027 with bipartisan support. In a press conference, the party leader, Rep. Park Chan-dae, stated, “We have decided to agree to a two-year moratorium on the implementation of the cryptocurrency taxation proposed by the government and ruling party.”
However, President Yoon Suk Yeol’s declaration of martial law on December 3 marked a dramatic turn in South Korea‘s politics, sparking widespread tensions. Yoon deployed heavily armed soldiers to Seoul’s streets, citing the need to protect the country’s democracy from “anti-state forces.” While this reminded many of the country’s past military-backed dictatorships, millions gathered around the Parliament shouting protest.
Despite surviving an impeachment vote led by the opposition party, Yoon’s troubles are far from over. The leader of his own party said that he would effectively be excluded from his duties before eventually stepping down. Though Yoon appeared on Television for hours, conveying apologies for causing public anxiety, the country has plunged into further turmoil. Widespread protests call for President Yoon’s ouster, deepening political chaos.
Amidst this political drama, the postponement of the crypto taxation bill in South Korea remains uncertain. The bill’s fate is tied to the future of President Yoon, who faces potential replacement amidst the chaos. Investors await to see if the bill will be revisited and passed soon.
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