South Korea's Tax Policy Forum Triggers KOSPI Crash as Unrealized Gains Proposal Fuels Market Concerns

According to Yonhap News, on June 23, lawmakers from South Korea's Democratic Party, Progressive Party, and Social Democratic Party convened a tax reform forum proposing a shift toward comprehensive income taxation. The new framework would subject unrealized capital gains on stocks and real estate to taxation, regardless of whether assets are sold.

Following the announcement, the KOSPI index plummeted 9.99% and triggered circuit breakers, with Samsung Electronics and SK Hynix leading declines, according to Bitget market data. The proposed policy aims to shift from taxing only realized gains to assessing taxation based on economic capacity, capturing increases in net asset value at the point of unrealization rather than sale.