Deputy Prime Minister Ku Yun-cheol Confirms Implementation of Digital Asset Tax Next Year

Deputy Prime Minister and Minister of Economy and Finance Ku Yun-cheol announced that the digital asset tax will be implemented starting next year. During a full meeting of the National Assembly's Finance and Economy Committee on the 29th, in response to a question from Kim Sang-hoon, a member of the ruling People Power Party, Deputy Prime Minister Ku stated, "The grace period for the digital asset tax will end this year, and taxation will begin next year." Kim pointed out the issues with the current tax system, arguing that investors are at a disadvantage because loss carryforwards are not applicable. He mentioned that major countries such as the United States, the United Kingdom, and Australia classify digital assets as capital gains and allow loss carryforwards, stating that domestic investors are placed in a relatively unfavorable tax system. He also expressed concerns that if taxation is implemented next year, investors may move to overseas exchanges. Deputy Prime Minister Ku explained that the current domestic tax system applies a 20% separate taxation on other income rather than capital gains tax, and that a comprehensive review is needed to transition to a capital gains tax system. He added, "For now, we will proceed with the planned taxation starting next year, but we will improve any necessary areas during the operation of the system in the future."

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