South Korea Floats Crypto Loss Carryforwards, But Only From 2029

South Korea's government wants to let crypto investors write off their bad years. Under a proposal now on the table, eligible trading losses could be carried forward to offset taxable gains in later years, with the window running through 2032. The catch: the clock starts only when the tax does, in 2029.

That means losses booked before the tax takes effect get left behind, even if an investor racks up taxable gains down the road. According to tokenpost.com, the plan deliberately begins the loss history at the same point as the planned tax start, so nothing from the pre-tax era counts toward future bills.

The bill itself is steep for anyone doing well. Individuals with annual net crypto gains above 2.5 million won would face a 22% tax, and losses could be carried forward for as long as three years — from 2029 onward only.

Nothing is final yet. South Korea's National Assembly has to amend the Income Tax Act before any of this becomes law. In the meantime, a government and private-sector working group is set to keep grinding through the first half of 2027, sorting out tax standards for complex crypto activity and simpler filing procedures.

That working group's output will shape how the framework actually lands before the proposed 2029 start. For now, investors have a rough sketch: three years of loss offsets, a 22% rate above the 2.5 million won mark, and a hard line drawn at 2029.