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South Korea’s nominee for finance minister wants to postpone the implementation of cryptocurrency taxes for two years

Choo Kyung-ho, the yet-to-be-confirmed nominee for deputy prime minister and finance minister, said on Monday that a planned 20% capital gains tax on digital asset and stock market investments should be delayed until January 2025.

Choo claimed it was too early for the crypto industry to accommodate a 20% levy on trading gains at a National Assembly confirmation hearing on Monday.

Choo believes the tax should be delayed until the crypto sector matures and new law is in place to ensure transparency and investor protection in digital asset transactions.

In December 2020, South Korea announced a 20% tax on cryptocurrency gains over 2.5 million KRW ($1,974.10).

In November 2021, the ruling Democratic Party and the opposition People Power Party agreed to postpone the crypto tax from January 1, 2022 to January 1, 2023.

Investors reacted adversely to the announcement, claiming that the new tax will harm the expanding crypto industry and that the threshold was excessively low, given that a proposed stock market tax would apply to capital gains above 50 million KRW (US$39,475.76). The tax on stock market gains is set to go into effect on January 1, 2023.

During his campaign, South Korean President-elect Yoon Suk-yeol vowed that crypto investors would be taxed the same way as investors in traditional financial assets.

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