Study calls for 5-year crypto loss carryforward, higher tax exemption in South Korea

A study commissioned by the National Assembly Budget Office called for allowing a five-year carryforward for virtual asset transfer losses and raising the current tax exemption threshold of 2.5 million won, as full-scale crypto taxation is set to begin in January next year, Edaily reported. The report also suggested introducing tax incentives to encourage the use of South Korean exchanges, amid concerns that the tax rollout could trigger capital outflows to overseas markets. Key proposals in the study on issues and improvement measures in virtual asset taxation included introducing loss carryforwards, raising the minimum taxable threshold, and setting more detailed standards by category for staking, lending, airdrops and hard forks.