The National Assembly's Finance and Economic Planning Committee will open its tax subcommittee on Nov. 2 to begin reviewing the government's tax code revision bill. Taxation on crypto assets, scheduled to take effect early next year, is headed for a two-year delay, while expanding eligibility for a tax credit on domestic electric vehicle production is expected to emerge as the biggest point of contention.
Lawmakers from both the ruling and opposition parties on the committee have tentatively agreed to hold the tax subcommittee on Nov. 2, according to political sources on the 25th. The session will begin deliberations on tax bills pending in the National Assembly, including the 2026 tax code revision package the government announced in August. "We expect to start by reviewing the government's proposal," a Democratic Party official said.
One of the biggest issues is whether the EV production tax credit will apply. In the National Assembly, Rep. Yoon Hoo-duk of the Democratic Party of Korea and Rep. Yoon Han-hong of the People Power Party recently jointly introduced an amendment to the Restriction of Special Taxation Act centered on creating a domestic production tax credit, adding momentum to broadening eligibility. The move follows a shared sense among both parties that support is needed as Chinese-made EVs rapidly expand their share of the domestic market. The government, which initially left EVs out of the tax revision package, has recently opened the door to the idea, saying it could be considered. The fiscal burden, however, which could reach several trillion won, is cited as an obstacle.
The government's property tax overhaul is also a key topic of discussion. The plan centers on differentiating tax burdens based on asset value and whether owners actually live in the property, rather than on the number of homes owned.
Taxation on crypto assets is increasingly likely to be postponed again. The Presidential Office is said to have discussed the approach in light of insufficient preparations for collecting the tax and public opinion among young adults. It also weighed the fact that the United States will join the Crypto-Asset Reporting Framework (CARF) starting in 2029. If participation by the U.S., which has a large trading market, is delayed, taxation could fall disproportionately on users of domestic exchanges. A Presidential Office official said, however, that nothing has been decided regarding a delay in crypto taxation.