South Korea to Proceed With Crypto Asset Taxation Starting January 1, 2027

According to Maeil Business, on July 29, South Korea's Deputy Prime Minister and Finance Minister Koo Yoon-cheol confirmed that crypto asset taxation will proceed as scheduled beginning January 1, 2027, despite opposition from lawmakers. The taxation will classify virtual asset income as miscellaneous income with a 22% flat tax rate.

However, ruling party lawmaker Kim Sang-hun criticized the tax structure for lacking loss carryforward deductions, arguing it creates unfair treatment compared to international standards. Kim cited an example where an investor with a 10 million won loss in the current year and 5 million won profit next year would face taxation on the 5 million won despite a net loss, while noting that foreign jurisdictions permit loss carryforward under capital gains frameworks. Deputy PM Koo acknowledged the concern but said current policy proceeds as planned, with room for future adjustments if necessary.