Hong Nam Ki, Deputy Prime Minister and Minister of Strategy and Finance, said at the meeting of National Assembly’s Strategy and Finance Committee on the 17th, “The issue of taxation of cryptocurrency will be announced in the tax reform in July.”

He said, “We have been working on establishing a new tax system to meet the changing conditions, but in particular, we are working on a new tax system for various items and tax categories while preparing a tax reform plan. Taxation of cryptocurrency is one of them.”

He continued, “We will actively respond to new taxation systems such as digital tax. Korean government is also actively participating in the discussion on the imposition of digital tax in the Organization for Economic Co-operation and Development (OECD) or in 20 major countries (G20).”

In particular, he said, “There is a problem that the Korean government can bring the taxation rights of foreign companies through digital tax, but there is also a problem that Korean companies need to tax the foreign government.”

He added, “We are taking part in the tax debate, balancing national interests. We will participate in the best possible way to secure and maintain ours. Personally, I think the digital tax imposition is needed as a new form, and the government is also considering it in that direction.”

Meanwhile, inside and outside the government, the capital gains tax is prominent as a tax item to be imposed on the cryptocurrency by Ministry of Strategy and Finance. It has been struggling with capital gains tax and other income tax as a tax to be levied on cryptocurrency. The taxation of capital gains tax has the disadvantage that it is complicated to set the standard market price of cryptocurrency transactions, and to calculate the trading margin, and the taxation of other incomes has to be dependent on voluntary reporting by individuals.

번역: 김동우 기자