Finance minister nominee backs January crypto tax rollout despite industry, opposition pushback

The nominee to head the Ministry of Finance and Economy expressed his intention on Sunday to implement the cryptocurrency tax next January as scheduled, despite pushback from both industry players and opposition lawmakers.

In written materials submitted to the National Assembly ahead of a confirmation hearing slated for Tuesday, Lee Hyoung-il, who currently serves as first vice finance minister, noted that specific tax rules would be finalized through a National Tax Service public notice by year-end, ensuring taxpayers face no confusion when filing.

He also defended classifying crypto asset income as miscellaneous income under the current tax framework, calling it an “appropriate” approach to applying taxpayer-friendly measures, such as a basic deduction and a single tax rate.

“Given that stock trades involving major shareholders, foreign equities and unlisted shares, along with transaction taxes, are already subject to taxation, extending tax rules to crypto assets is essential for tax fairness,” he said.

The crypto tax regime treats profits from transferring or lending digital assets as miscellaneous income, levying a 20 percent tax rate. Taxable amounts apply to net annual gains after deducting a basic allowance of 2.5 million won ($1,860), with no provision to carry forward losses into future tax years.