2027 implementation as scheduled: South Korea's digital asset tax applies a 20% rate to income exceeding 2.5 million won

Odaily News: South Korea's Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, stated during a plenary session of the National Assembly's Strategy and Finance Committee that the taxation of digital assets will be implemented as scheduled on January 1, 2027, and relevant systems may be supplemented and improved thereafter if necessary. According to the current Income Tax Act, a 20% tax rate (up to 22% including local tax) applies to the portion of digital asset transaction income exceeding 2.5 million won. Originally scheduled for implementation in 2022, the tax has been postponed three times due to insufficient infrastructure and other reasons. In response to concerns raised by People Power Party lawmaker Kim Sang-hoon that the failure to apply loss carryforward deductions could lead to a decline in domestic demand and capital outflows, Koo noted that stock investments are also not eligible for loss carryforwards, and the system can be reviewed and improved at any time after taxation begins.