South Korea’s Incoming Finance Minister Reveal Plans to Tax Cryptos

South Korea’s Incoming Finance Minister Reveal Plans to Tax Cryptos

tax cryptos

Hong Nam-ki, South Korea’s incoming finance minister, has recently made it known that he has plans to tax cryptocurrency, especially initial Coin Offerings (ICOs). Hong also made it known in a recent statement that a Taskforce made up of experts from both the private and public sector will be formed, with the goal of ensuring that the country’s cryptocurrency tax rules are in line with international standards.

Hong who was previously serving as the chief of the government policy coordination office, under the Prime Minister’s office was recently nominated by President Moon Jae-in to replace Kim Dong-Yeon as the country’s finance minister has revealed his plans for taxing the cryptocurrency industry.

He made the revelation through his written answers to questions asked by an opposition lawmaker about his tax policies to the National Assembly.

The written answer which was intended for his forthcoming confirmation hearing revealed his tax policies. According to a local report detailing his answers, Hong wrote that:
“The taxation plan would be finalized in accordance with the creation and progress of the taxation infrastructure and the trend on international discussions,”

He added that:
“A task force consisting of experts from relevant government agencies including the National Tax Service and the private sector will be formed to examine overseas examples and hammer out the taxation plan.”

It is important to note that, although his nomination by the President is not relying on approval from the lawmakers, since only Prime Minister post is the only cabinet post that requires a vote from lawmakers.

Hong is however required to pass through a parliamentary confirmation hearing.

As regards his stance when it comes to regulating the crypto industry, Hong stated that: “Cryptocurrencies are a new phenomenon and so there is no internationally agreed regulatory framework.” He also confirmed that: “there are such lingering problems like the market overheating and investor protection. Therefore, we need to be careful in building the regulatory framework.”