The FIT, which would be imposed at a rate of 20–25% on yearly profits exceeding 50 million won ($35,000) from stocks and other assets, is one of the main repeals. Marketers anticipate that this step will lessen the financial strain on investors and restore market confidence.
Democratic Party leader Lee Jae-myung hailed the FIT abolition as a gift. He believes it can revitalize domestic markets. However, several lawmakers criticized the move, citing its long-term adverse effects. A majority voted down a proposal to cut inheritance tax rates and increase minimum thresholds. This reflects political disagreements over wealth redistribution policies.
The delay in taxing virtual asset income, originally scheduled for 2025, gives regulators more time to prepare. A 20% tax on annual crypto earnings above 2.5 million won ($1,750) will now take effect in 2027. Crypto advocates welcomed the decision, saying it aligns South Korea with evolving global trends.
Similar moves are unfolding internationally. The Czech Republic plans to exempt small crypto transactions from taxes. Meanwhile, Italy and Russia are revising their crypto tax laws to attract investors. These shifts demonstrate growing recognition of cryptocurrencies’ role in the financial landscape. Nations are striving to balance regulation with growth.
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