The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Korea to ease entry rules to boost tourism, domestic spending

  • 3

    IU says she was excited to share screen with Park Seo-joon in 'Dream'

  • 5

    INTERVIEWForeign-born entertainers seek to revolutionize local industry

  • 7

    Generation Z entrepreneurs turn oyster shells into trendy dish soap

  • 9

    Apple to open 5th retail store in Korea this week

  • 11

    Celltrion chairman vows to develop new drugs, initiate M&As

  • 13

    College students turn to 1,000 won breakfast to beat inflation

  • 15

    Children, pregnant women executed, tortured in North Korea: report

  • 17

    NewJeans, Apple join hands to bring immersive audio experience

  • 19

    Korean players faced with uncertainty in new MLB season

  • 2

    From IVE to NCT DOJAEJUNG, K-pop hotshots brace for April chart race

  • 4

    Korea moves to shorten COVID-19 isolation period to 5 days

  • 6

    INTERVIEWCan art become stable investment source?

  • 8

    Will dismantling oligopoly result in successful bank industry reform?

  • 10

    Terraform Labs co-founder's extradition could be delayed more than 1 month

  • 12

    Fintech, lifestyle products can help Korea grow trade ties with Hong Kong: city's trade promotion chief in Korea

  • 14

    Advancing biological weapons convention (BWC): the Philippine role

  • 16

    Top envoy to US tapped as new national security advisor

  • 18

    Ex-journalist to lead NK defector support foundation

  • 20

    LX Hausys inks strategic alliance with Reynaers for high-end home windows market

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Fri, March 31, 2023 | 09:05
Economy
Watchdogs pressed on crypto tax plans
Posted : 2021-10-03 15:51
Updated : 2021-10-04 09:09
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Finance Minister Hong Nam-ki, left, and Financial Services Commission Chairman Koh Seung-beom / Yonhap
Finance Minister Hong Nam-ki, left, and Financial Services Commission Chairman Koh Seung-beom / Yonhap

'Unfair' crypto tax rules still face criticism

By Lee Min-hyung

Lawmakers are set to grill the leaders of financial watchdog agencies over the government's decision to levy income taxes on cryptocurrency trading starting in 2022.

Under the new tax policy, people whose annual cryptocurrency trading revenues top 2.5 million won ($2,100) will be subject to a tax equivalent to 20 percent of the income.

The decision, however, is still widely considered to be hasty, at a time when Korea's cryptocurrency market is still in its infancy and faces confusion amid a set of tough regulations imposed by financial authorities.

Lawmakers from both the opposition and ruling parties have also raised the need to delay levying the tax for another year to minimize confusion in the market. They argued it is more urgent for policymakers to establish legal safeguards to protect cryptocurrency investors before taking steps to tax them.

The central point is whether Finance Minister Hong Nam-ki will be able to justify the crypto taxation during an upcoming National Assembly audit on Wednesday.

But given his words during a recent Assembly interpellation session, chances are slim that the minister will change his stance regarding the crypto tax timeline.

"The cryptocurrency market has grown sharply and its size is as big as the benchmark KOSPI, but crypto traders do not pay any taxes at all," he said. Hong flatly refused to consider delaying the taxation timeline, saying that doing so could increase confusion in the market.

But criticism over the tax plan is growing even within the ruling camp.

Korea's top crypto exchange to implement stringent ID checks
Korea's top crypto exchange to implement stringent ID checks
2021-10-03 15:47  |  Markets

Rep. Yoo Dong-soo of the ruling Democratic Party of Korea (DPK) called for the need to revise the tax policy, as it comes with numerous loopholes on various issues, and opens up the possibility of tax evasion. Yoo is the leader of the DPK-led taskforce on cryptocurrency policy.

"The government needs to review the planned implementation of the policy, as it still lacks systematic enough details to win over the public and crypto traders," he said. "Under the current plan, only those who report their revenue will have to pay taxes, which is not fair."

There are more potential legal loopholes in the scheduled crypto taxation initiative, but the government and financial authorities plan to move forward with its quick implementation, citing the need to establish an infrastructure for crypto taxation, according to the lawmaker.

Yoo Seong-min, a minor presidential contender from the main opposition People Power Party, also criticized the crypto taxation plan as lacking "fairness," one of the core criteria being pushed by President Moon Jae-in since he took office in 2017.

Starting from 2023, stock investors are liable to pay taxes on capital gains topping 50 million won, while they do not have to pay taxes below that level. But the standard for cryptocurrency is much stricter, which Yoo said is unfair.

"The government should put an end to the unfair crypto tax plan immediately, as it is not fair when compared with tax plans for stock trading," he said.

Finance Minister Hong Nam-ki, left, and Financial Services Commission Chairman Koh Seung-beom / Yonhap
Finance Minister Hong Nam-ki, right, shares hands with Financial Services Commission Chairman Koh Seung-beom at the headquarters of the Korea Federation of Banks in Seoul, Sept. 30. Joint Press Corps.

Financial Services Commission (FSC) Chairman Koh Seung-beom will also attend the upcoming Assembly audit for the first time since taking office in August.

Koh will face questioning on the watchdog's plan to minimize any damage from its ever-toughening set of household lending rules. The FSC chief warned of a further tightening of regulations on loans, in order to control a steep rise in household debt. The new package of lending rules will be introduced sometime around mid-October, which comes as growing confusion among those who plan to receive loans from banks.

According to data from the Bank of Korea, the nation's total household credit topped a record 1,800 trillion won as of the end of June this year. Household credit means the total amount of debt held by all households here, including household loans taken out from financial institutions and credit purchases that have not yet been paid.

Citing the rapid rise in household debt, Koh has reiterated the need to control the pace through regulations.

Lawmakers will question whether such a strict regulation is necessary and urge the authority to come up with specific measures to protect customers from the regulation.




Emailmhlee@koreatimes.co.kr Article ListMore articles by this reporter
 
Top 10 Stories
1College students turn to 1,000 won breakfast to beat inflation College students turn to 1,000 won breakfast to beat inflation
2Children, pregnant women executed, tortured in North Korea: report Children, pregnant women executed, tortured in North Korea: report
3Rare Joseon-era map returns home from Japan Rare Joseon-era map returns home from Japan
4Korean aesthetics, spirit live on at Gyeongbok Palace Korean aesthetics, spirit live on at Gyeongbok Palace
5Korea to scrap customs form for travelers without dutiable goods Korea to scrap customs form for travelers without dutiable goods
6South Korea nominates new ambassador to US South Korea nominates new ambassador to US
7[INTERVIEW] South Korea needs to make decision on sending lethal aid to Ukraine : CNAS CEO INTERVIEWSouth Korea needs to make decision on sending lethal aid to Ukraine : CNAS CEO
8Carmakers unveil latest models at Seoul Mobility Show Carmakers unveil latest models at Seoul Mobility Show
9Japanese top visitors to Korea in 2023 as tourism rebounds Japanese top visitors to Korea in 2023 as tourism rebounds
10Chun Doo-hwan's grandson to visit May 18 National Cemetery Chun Doo-hwan's grandson to visit May 18 National Cemetery
Top 5 Entertainment News
1From IVE to NCT DOJAEJUNG, K-pop hotshots brace for April chart race From IVE to NCT DOJAEJUNG, K-pop hotshots brace for April chart race
2IU says she was excited to share screen with Park Seo-joon in 'Dream' IU says she was excited to share screen with Park Seo-joon in 'Dream'
3[INTERVIEW] Foreign-born entertainers seek to revolutionize local industry INTERVIEWForeign-born entertainers seek to revolutionize local industry
4NewJeans, Apple join hands to bring immersive audio experience NewJeans, Apple join hands to bring immersive audio experience
5Celebrity chef Paik Jong-won takes his business skills to next level with 'The Genius Paik' Celebrity chef Paik Jong-won takes his business skills to next level with 'The Genius Paik'
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group