LEE'S PLEDGE ON TAXATION OF VIRTUAL ASSETS

[Anchor Lead]

Ruling Democratic Party’s presidential candidate Lee Jae-myung has promised to delay taxation of virtual assets by one year and also increase tax deduction limits. The pledge is seen as a move to woo young voters many of whom invest in cryptocurrency. However striking a different note from government policies, controversy is expected down the road.

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Ruling DP presidential candidate Lee Jae-myung met with young investors and officials of the virtual asset industry. He laid out campaign pledges to delay the planned taxation on earnings gained from virtual assets by one year and raise the tax deduction limits.

[Soundbite] Lee Jae-myung(DP Pres. Candidate) : "I believe a one-year delay to coincide with taxation on stock investment is the right thing to do. Sincere discussions on tax rate and deduction limit are also necessary."

From next year, the government plans to impose a 22 percent tax on annual capital gains of more than 2.5 million won from virtual asset transactions. The ruling party has been calling for a one-year delay which the government objects. Capital gains from stock trading that exceed 50 million won will be taxed two years from now in 2023. Young people are disgruntled, saying the two timetables should match, citing fairness. Lee stressed that now that he is the presidential nominee, his old-fashioned party will change and be different.

[Soundbite] Lee Jae-myung(DP Pres. Candidate) : "I believe many are disappointed at policy measures and the direction pursued by the DP and the government. Now that I’m a candidate, the DP will be completely different from the past."

Lee’s latest vows are seen as targeting young voters and seeking to differentiate from the current government policy measures. The former governor has also begun diplomatic moves. Through bilateral meetings with the U.S. and China held on the same day, his camp tried to underscore balanced diplomacy, valuing both the alliance with Washington and ties with Beijing. During talks with Chinese Ambassador Xing Haiming, Lee asked for China’s cooperation to address the shortage of urea solution, a vital fluid for diesel vehicles. The ambassador promised to make efforts while noting his country is also running short of the solution. On Friday, Lee will travel to Ulsan, his first destination in weekly tours around the country, and visit a traditional market and speak with young voters.