South Korea’s Ministry of Economy and Finance held a meeting with virtual asset businesses and experts to examine preparations and concerns ahead of taxation scheduled to begin on Jan. 1, 2027. First Vice Minister Kwon Dae-young committed to reviewing tax infrastructure, rules for different transaction types and filing arrangements. The meeting gathered views on implementation and possible deferral without announcing a change to the scheduled start. Industry participants called for clear tax standards as trading methods become more varied and complex. They requested time to build and test systems for submitting tax information, alongside consideration of equitable tax treatment between users of domestic and overseas exchanges. Experts urged consideration of changes in the market and regulatory environment since the tax framework was legislated in late 2020, including potential changes arising from the proposed Digital Asset Basic Act. They also recommended clarifying the treatment of transactions such as staking and examining loss carryforwards and simpler filing arrangements. The framework’s implementation has already been deferred three times. Kwon emphasized that the principle of taxing income must be supported by adequate tax infrastructure and a market regulatory framework. His planned review will cover readiness for international information exchange, transaction-specific tax standards and ease of filing.

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