South Korea’s Ministry of Economy and Finance said virtual asset income was classified as miscellaneous income to apply a taxpayer-friendly tax regime, including reducing potential disputes through comprehensive taxation, rather than because virtual assets have an unclear legal status. The ministry was responding to a Sept. 14 Seoul Economic Daily report that attributed the classification to the assets’ undefined legal nature. It said losses from virtual asset investments cannot be carried forward, noting that overseas stocks and ETFs face the same restriction to maintain fairness across income types. Taxpayers must directly prove acquisition costs. For assets acquired on or before Dec. 31, 2026, the market price on that date may be recognized as the acquisition cost when verification is difficult. For assets acquired from 2027 onward, 50% of the transfer value may be recognized when objective documentation is difficult to provide.