Ministry Clarifies Virtual Asset Income Classification as General Income for Taxpayer Benefits

The Ministry of Economy and Finance stated that classifying virtual asset income as general income is not due to unclear legal status but rather to apply taxpayer-friendly tax measures through comprehensive taxation, aiming to reduce dispute potential. This clarifies a Seoul Economic report from October 14 claiming virtual assets were classified as general income because their legal nature was ambiguous.

The ministry explained that the exclusion of loss carryforward for virtual asset investments aligns with similar treatment for overseas stocks and ETFs, emphasizing tax fairness across income types. It also noted that acquisition costs must be independently verified by taxpayers, though assets acquired before December 31, 2026, may use market value as cost basis if verification is difficult, while post-2027 acquisitions may claim 50% of sale price as cost basis under similar circumstances.