South Korean Crypto Tax Guidelines to Be Announced This Year

South Korea's nominee for deputy prime minister and finance minister, Lee Hyoung-il, has announced that detailed tax guidelines for virtual assets will be released before the end of the year. The guidelines are in preparation for the January 1 implementation of crypto taxation.

According to Lee, the current classification of virtual asset income as 'other income' is appropriate because it allows for a basic deduction and a single tax rate, reducing compliance costs under comprehensive income taxation.

The move aims to improve fairness across asset classes by taxing virtual assets similarly to stocks and other investments. However, Lee also cautioned that introducing a capital gains tax, including the financial investment income tax, should be reviewed only after financial markets are sufficiently stable.