South Korea to Implement Virtual Asset Taxation from January

South Korea's Ministry of Economy and Finance has announced plans to begin taxing virtual assets starting January 1 next year. According to ChainCatcher, this marks the first public statement by the ministry on the issue of virtual asset taxation. Under the current income tax law, income generated from the transfer or lending of virtual assets will be classified as 'other income.' A tax rate of 22% will apply to virtual asset income exceeding 2.5 million Korean won. This includes a 20% other income tax and a 2% local income tax. The taxation will affect approximately 13.26 million investors. Moon Kyung-ho, Director of the Income Tax Division at the Ministry of Economy and Finance, revealed that the National Tax Service is preparing relevant notices and has held multiple discussions with the country's five major virtual asset operators. A legislative notice is expected to be issued soon.