Economy - The Korea Times

GOPAX suspends withdrawals following hacking threats

South Korean cryptocurrency exchange GOPAX said Friday it had suspended withdrawals as an emergency measure following hacking threats. The exchange said it halted withdrawals at 2:55 p.m. and was transferring most of the assets held in its so-called hot wallets to cold wallets, which are not connected to the internet. The precautionary measure was taken in response to hacking threats, and no actual loss of assets had been reported, GOPAX said. The South Korean financial sector has recently been hit by a series of cybersecurity incidents. The Financial Services Commission earlier said cybersecurity incidents had been confirmed at 37 financial institutions, affecting approximately 470,000 customer records.

2d agoBy Yonhap

GOPAX suspends withdrawals following hacking threats

Korea seeks another crypto tax delay over gaps in overseas data and rules

The government will seek to postpone cryptocurrency income taxation by another two years to 2029, Finance Minister Lee Hyoung-il said Thursday, renewing debate over tax fairness and policy credibility after three previous postponements. Lee said more time is needed to secure overseas transaction data and refine the rules. But the reversal, just a month after the government reiterated its commitment to proceeding in January, has drawn criticism over policy predictability and possible political motivations. At a briefing, Lee said the government would work with the National Assembly to pursue the delay. The announcement came a day after ruling Democratic Party of Korea (DPK) Chairman Kim Min-seok formally requested another postponement. Under the legislation awaiting implementation, income from transferring or lending digital assets would be classified as miscellaneous income. Annual net profits above a 2.5 million won ($1,900) allowance would be taxed at 22 percent, including local income tax. Net profits would be calculated by deducting acquisition costs and related expenses from procee

Nov 5, 2026By Jun Ji-hye

Korea seeks another crypto tax delay over gaps in overseas data and rules

How other countries tax crypto gains

Major economies, including the United States and Britain, already tax cryptocurrency investment gains, though rates and allowances vary depending on holding periods, income levels and the nature of transactions. In the United States, cryptocurrencies are treated as property. Profits from assets held for a year or less are taxed at ordinary federal income tax rates ranging from 10 to 37 percent, while gains on assets held longer qualify for federal long-term capital gains tax rates of 0, 15 or 20 percent, depending on income. State taxes and additional levies may apply. Britain imposes capital gains tax at 18 or 24 percent, depending on income, with an annual tax-free capital gains allowance of 3,000 pounds per person. Canada classifies trading profits as either capital gains or business income. For capital gains, only half the profit is included in taxable income. Japan generally treats cryptocurrency profits as miscellaneous income, combining them with other earnings and applying a maximum combined income and resident tax rate of about 55 percent. It is seeking to introduce a separate 2

Nov 5, 2026By Jun Ji-hye

Korean crypto exchanges on alert after $6.3 bil. Binance heist

Korea’s cryptocurrency industry is on alert following a $6.3 billion hack at Binance, the world’s largest cryptocurrency exchange. As signs emerge that the stolen assets are being laundered, domestic exchanges are seeking regulatory changes that would allow them to promptly halt withdrawals following hacks at other platforms, financial authorities and industry officials said Tuesday. The U.S. Federal Bureau of Investigation (FBI) attributed the theft to North Korea in a statement released Saturday, saying the attackers stole about $6.3 billion in cryptocurrency from Binance on Thursday. Blockchain analytics firm Chainalysis said the North Korean hackers appeared to have entered a second stage of laundering the proceeds. Funds were being moved out of temporary holding wallets and transferred to blockchain networks such as Solana. The firm also detected efforts to convert 970,522 Solana tokens, valued at approximately 129 billion won ($96.3 million), into bitcoin. The transfers across networks and subsequent conversion into bitcoin are believed to be aimed at making the funds harder t

Nov 3, 2026By Jun Ji-hye

Korean crypto exchanges on alert after $6.3 bil. Binance heist

COVER STORY North Korea has every incentive to keep stealing crypto, analysts say

The $6.36 billion cryptocurrency heist targeting Binance has exposed a troubling reality for the digital asset industry: North Korea is increasingly exploiting security vulnerabilities to bankroll Pyongyang's military ambitions. The stolen amount is equivalent to 22 percent of North Korea's 2025 gross domestic product, making the attack the largest cryptocurrency theft on record and one of the biggest financial crimes in history. Analysts warned Sunday that it is unlikely to be the last. "We're dealing with sophisticated adversaries who may have substantial resources, years of patience and objectives that extend well beyond financial gain," said Michael O'Loughlin, managing partner of Argonautic Global and board member of Blockchain Ireland. Proceeds from cryptocurrency theft have become an increasingly important source of funding for cash-strapped North Korea, alongside an estimated $22 billion in foreign income generated since 2022 through its support for Russia's war in Ukraine. The stolen funds could help finance its nuclear and ballistic missile programs, as well as efforts to modern

Nov 1, 2026By Lee Yeon-woo

[COVER STORY] North Korea has every incentive to keep stealing crypto, analysts say

Ruling party, gov't fail to agree on delay of cryptocurrency tax

The ruling Democratic Party of Korea (DPK) and the government failed to reach a decision for a fourth time Wednesday on whether to delay the planned taxation of cryptocurrencies, with the tax set to take effect next year. The meeting at the National Assembly, attended by DPK lawmakers and finance ministry officials, came as Korea plans to begin taxing virtual assets on Jan. 1. "We need to discuss several issues regarding taxation, and while some argued for taxation since it has been postponed three times, there were suggestions that a few further improvements should be made," Rep. Oh Gi-hyoung told reporters. Officials at the meeting agreed on the need to levy tax on virtual assets but raised several concerns, including tax fairness between users of domestic and overseas exchanges, according to the lawmaker. The DPK will further review the issues before reaching a final decision, he added. Korea first introduced a taxation scheme on cryptocurrencies in 2020 but its implementation has been postponed three times. Under the scheme, annual cryptocurrency gains exceeding 2.5 million won ($1,880

Oct 28, 2026By Yonhap

Ruling party, gov't fail to agree on delay of cryptocurrency tax

Regulators weigh antitrust safeguards as Naver-Dunamu deal stalls

Financial authorities said Thursday that they are considering safeguards to address concerns over potential market dominance arising from the merger of Naver Financial and Dunamu. "The Fair Trade Commission (FTC) is currently conducting a thorough review of whether the proposed merger between Naver and Dunamu would restrict competition," the Financial Services Commission said in a written response to Rep. Lee Kang-ill of the ruling Democratic Party of Korea. "Similarly, under the proposed Digital Asset Basic Act, we are considering safeguards to ensure that cryptocurrency exchanges, which serve as critical market infrastructure, maintain their public interest role and neutrality without being subject to undue influence from any particular company or shareholder," it added. Last November, Naver Financial announced plans to make Dunamu a wholly owned subsidiary through a comprehensive share swap. With the deal, Naver Financial aims to tap into new growth opportunities in digital assets. Dunamu would gain foundation to expand beyond its existing cryptocurrency exchange and integrate with Na

Oct 22, 2026By Lee Yeon-woo

Regulators weigh antitrust safeguards as Naver-Dunamu deal stalls

Korea's crypto tax faces 4th delay as gov't turns cautious amid low approval ratings

Korea’s tax on cryptocurrency gains, scheduled to take effect in January, could face a fourth postponement as the government turns cautious amid mounting calls for a delay from investors, the industry and lawmakers from both ruling and opposition parties. Authorities have defended the levy on the principle that income should be taxed and on grounds of fairness across asset classes. However, the government’s recent pledge to reassess tax infrastructure and market conditions has fueled expectations of another postponement. The subtle shift comes as falling stock prices and tighter property taxation have already frustrated investors, raising concerns that crypto taxation could provoke further backlash. Low approval ratings for President Lee Jae Myung and the ruling party are adding to the political pressure. The issue is particularly sensitive among young investors. Under the current timetable, the first filing and payment deadline would fall in May 2028, immediately after parliamentary elections that April. On Wednesday, Rep. Park Soo-young of the main opposition People Power Party joi

Oct 21, 2026By Jun Ji-hye

Korea's crypto tax faces 4th delay as gov't turns cautious amid low approval ratings

Dunamu, Bithumb shares hit yearly lows amid trading slump, tax uncertainty

Shares of Korea’s cryptocurrency exchange operators have hit their lowest levels of the year, with sentiment dampened by weak trading activity hurting earnings and uncertainty surrounding next year’s crypto tax, according to industry officials Tuesday. According to Naver Pay’s unlisted stock trading platform, shares of Dunamu, the operator of the country’s largest crypto exchange, Upbit, traded at 241,000 won ($181) Tuesday. The stock edged up from its yearly low of 236,000 won last Friday but remained well below the 370,000 won recorded when its share swap with Naver Financial was announced last November. Shares of Bithumb, the country’s second-largest exchange operator, are now trading in the 140,000 won range, down from about 350,000 won last November. They have remained weak since an erroneous bitcoin payout in February sent them tumbling to around 220,000 won. The declines come as subdued cryptocurrency trading continues to strain both companies’ businesses. Bitcoin has attempted to recover but has struggled to sustain momentum, leaving exchange operators desperate to re

Oct 20, 2026By Jun Ji-hye

Dunamu, Bithumb shares hit yearly lows amid trading slump, tax uncertainty

Fathers take on more, but mothers still bear heavier domestic workload

For a 33-year-old bank employee surnamed Jung raising a 3-year-old son in Seoul’s Yeongdeungpo District, coming home from work feels like starting a second shift. She uses a reduced working hours program for parents to leave work an hour or two early. Once her mother-in-law, who looks after the child while the couple are at work, heads home, Jung handles child care alone until her husband returns. “As soon as I get home, I feed my son dinner, bathe him and play with him. By then, my husband is home,” she said. “While he plays with our son, I finally get to shower, wash the dishes and tidy up. Then it’s time to put our son to bed.” Jung gets her first chance to sit down on the sofa after her son falls asleep, past 10 p.m. “Even though I leave work early, it feels like I work overtime every day,” she said. “My husband does quite a lot of child care, but our son tends to seek me out more, and I feel that a larger share of the housework naturally falls to me.” Government figures released Monday show that an uneven division of domestic duties persists among young working pa

Oct 19, 2026By Jun Ji-hye

Cryptocurrency