Ruling Democratic Party(DP) presidential candidate Lee Jae-myung pledged to offer a one-year grace period until 2023 on imposing taxes on income derived from virtual assets and to significantly raise the deductible limit.

On his social media on Thursday, Lee emphasized that the new tax should earn public trust through sufficient preparation, a move likely aimed at securing support from those in their 20s and 30s.

The candidate said the government still needs to decide whether it would be appropriate to classify such assets as intangible properties and the validity of imposing taxes without considering losses.

Lee said some believe that income from virtual assets should be considered similar to that from financial assets in accordance with international accounting standards, rather than the current classification as other income.

Starting next year, the government plans to impose a 20-percent tax on income generated from the transfer or borrowing of virtual assets, with a deductible of two-point-five million won.

The plan faced backlash as taxation on stock shares from 2023 will be imposed on income with deductibles of 50 million won or more.