An image decoding method includes a step of deriving a modified transform coefficient, wherein the step of deriving the modified transform coefficient includes the steps of: deriving a first variable indicating whether the transform coefficient exists in an area excluding a DC location of the current block; parsing an LFNST index based on the derivation result; and deriving the modified transform coefficient based on the LFNST index and an LFNST matrix, and based on the fact that the current block is divided into a plurality of sub-partition blocks, the LFNST index can be parsed without deriving the first variable.