ChainCatcher report, according to DigitalAsset, South Korea’s Vice Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, stated at the full meeting of the National Assembly’s Committee on Finance and Economy that digital asset taxation will be implemented as scheduled on January 1, 2027, with provisions to be further refined if necessary. Under the current Income Tax Act, income from digital asset transactions exceeding 2.5 million KRW will be subject to a 20% tax rate (including local taxes, up to 22%), originally set to take effect in 2022 but delayed three times due to insufficient infrastructure and other factors. In response to concerns raised by People Power Party lawmaker Kim Sang-hoon that the lack of loss carryforward deductions could lead to reduced domestic demand and capital outflows, Koo noted that stock investments also do not permit loss carryforwards, and the system can be reviewed and improved after taxation is implemented. Regarding the introduction of a capital gains tax similar to those abroad, Koo stated that a comprehensive, systemic evaluation of the overall capital market is required.
South Korea to Implement Digital Asset Tax in 2027 as Scheduled
ChaincatcherShare
Summary
South Korea will implement its digital asset market tax on January 1, 2027, as announced by Deputy Prime Minister Koo Yun-cheol during a parliamentary session. The tax applies a 20% rate (up to 22% including local taxes) on profits from digital asset trading exceeding 2.5 million KRW. Originally scheduled for 2022, the implementation was delayed three times due to infrastructure shortcomings. Koo noted that loss carryforward deductions are not permitted, similar to stock investments, and emphasized the need for a comprehensive capital market review before introducing a capital gains tax. Traders are advised to monitor altcoins closely amid regulatory changes.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.