South Korea’s National Assembly Budget Office has recommended allowing virtual asset investors to carry forward trading losses for up to five years and raising the current tax exemption threshold of 2.5 million won, approximately $1,800, as the country prepares to implement full-scale taxation on cryptocurrency gains starting January 2025. The study outlines measures to address practical challenges, including more detailed tax standards for staking, lending, airdrops, and hard forks, as well as tax incentives for domestic exchanges to prevent capital flight. The existing framework classifies digital-asset income as other income with a 20% national tax rate above the exemption threshold, and the Budget Office proposals aim to ease burdens on investors amid market volatility. The recommendations are not binding but carry weight as analysis provided to lawmakers, with the final rules expected to depend on legislative action before the January 2025 deadline. This update reflects a shift from earlier 2027 implementation plans outlined in prior reports, incorporating the Budget Office’s focus on loss offset and threshold adjustments aligned with practices in other jurisdictions.