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South Korea is considering a two-year delay in implementing its crypto taxation laws.
The virtual asset taxation regime was already pushed back from January 2023 to January 2025. South Korea's ruling People Power Party is now proposing a second delay as a “general election pledge.” Its legislative elections will be held on 10 April 2024.
Approved in December 2022, the new tax reforms see South Koreans with more than 2.5 million Korean won ($1,865) in crypto asset gains will be subject to a 22% tax. The government plans to submit an amendment later this month.
Jeong Jung-hoon, deputy minister of the tax and customs office for South Korea’s Ministry of Economy and Finance, previously said that the National Assembly is weighing up abolishing crypto asset gains from income tax for financial investments.
President Yoon Suk-yeol's administration intends to eliminate taxes on financial investments like stocks and funds to bolster the wealth-building and financial planning efforts of its citizens.
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The People Power Party is now arguing that the approved tax regime would only be possible when a “minimum system for taxation of virtual assets is established.”
The decision is in line with the party's initiative to prioritize regulatory groundwork before enforcing taxation.
“Taxation is something the country should do to protect its people’s property and lives. However, the tax base has not been established right now,” the report quoted an official of the People Power Party.
“I think there is a need for at least a two-year delay until the amendment is passed and such a system is actually built.”
Klaytn-Finschia Merge
Last week, the Klaytn Foundation and Finschia Foundation announced the successful passage of the Klaytn<>Finschia Mainnet Merge Proposal (KGP-25), marking a significant step towards creating Asia's most extensive Web3 ecosystem.
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This strategic move aims to integrate the technological, service, and business capabilities of Finschia and Klaytn, setting a new benchmark for blockchain competitiveness in Asia.
The merge proposal, which saw an overwhelming majority in favor—95% from Finschia and 90% from Klaytn—aims to consolidate the strengths of both blockchains.
