South Korea2026.10.21Digital Asset

Finance Committee: Excluding Loss Carryforward From Crypto Tax Reflects Concern Over Reinforcing Speculation

• The committee's report was released on October 21 in response to a petition calling for the abolition of digital asset taxation.
• Current rules allow offsetting gains and losses within the same tax year, but do not permit carrying forward losses to future years.
• Starting January 1, 2027, digital asset income will be taxed as miscellaneous income at 20% (22% with local income tax) after a 2.5 million won annual basic deduction.