SNU study finds crypto tax delays driven by readiness concerns

A study by Seoul National University revealed that in three instances of delaying taxation on virtual assets, expert and industry arguments regarding system readiness outweighed public opinion favoring tax introduction. The Institute of Korean Political Studies published a paper in June analyzing policy decisions on four tax-cut measures under the Lee Jae-myung government: financial investment income tax, digital asset tax, inheritance tax, and comprehensive real estate holding tax. The paper highlighted a significant gap between public support for the digital asset tax and the National Assembly's decision to delay it. It emphasized that the issue was framed around inadequate tax systems and infrastructure, indicating a problem-stream-dominant mechanism that influenced policy trends, unlike the financial investment income tax linked to the stock market. The study concluded that different policy decision-making mechanisms can operate under the same political conditions, depending on a policy's internal characteristics and external factors, and that successful implementation requires tailored strategies for each policy.