Analysis of Tax Issues for Virtual Assets in South Korea in 2027

Editor Park Sang-hyuk analyzed the tax issues related to virtual assets in South Korea, which are set to take effect on January 1, 2027. Experts pointed out that loss carryforward deductions and acquisition tax assessments are major areas for improvement. The loss carryforward deduction allows investors to offset investment losses against future investment gains over several years to reduce taxes. While the United States and Japan plan to implement this, South Korea does not. The acquisition tax will be based on the greater of the actual acquisition price or the market value as of December 31, 2026, in January 2027. Editor Park noted that it is difficult to prove the timing and price of transactions on decentralized exchanges, indicating a need for system improvements. He also emphasized that the trading volume of perpetual contracts for digital assets is about eight times greater than that of spot trading, necessitating discussions on taxation. He pointed out the lack of a taxation system for stablecoin arbitrage and new DeFi services as additional issues. While the authorities' stance on digital asset taxation is valid, he stated that improvements in tax equity within the market are necessary. A discussion on digital asset taxation is scheduled to be held by the Democratic Party on September 3.

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