Odaily Planet Daily report: South Korea’s Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, stated at a 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 taxed at a rate of 20%, rising to a maximum of 22% including local taxes. The implementation, originally planned for 2022, has been postponed three times due to insufficient infrastructure and other factors. In response to concerns raised by People Power Party lawmaker Kim Sang-hoon that the absence 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 tax system can be reviewed and improved at any time after implementation.
South Korea to Implement Digital Asset Tax in 2027 with 20% Rate on Income Exceeding 2.5 Million Won
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Summary
South Korea will implement digital asset regulation in 2027, imposing a 20% capital gains tax on income exceeding 2.5 million KRW. Deputy Prime Minister Koo Yun-cheol confirmed the policy will take effect on January 1, 2027, following three delays due to infrastructure shortcomings. The tax rate may reach up to 22% when including local levies. Koo addressed concerns about capital outflows, noting that stock investments also do not allow loss carryforward deductions and that the system can be adjusted after implementation.
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