South Korea proposed taxing unrealized gains on stocks and real estate at a National ***** embly forum on Tuesday. The push triggered what local traders are already calling Black Tuesday across the entire Korean stock market.
The proposal would tax investors on paper profits they have never realized by selling, redefining how wealth is treated in Asia's fourth-largest economy.
An unrealized gain is the on-paper profit an investor holds before actually selling the ***** et and converting the value into cash. The new South Korean push would treat that paper gain as taxable income, even if the underlying stock or property has never changed hands.
The forum brought together a powerful coalition. Lawmakers from the Democratic Party, the Progressive Party, the Rebuilding Korea Party, and the Social Democratic Party signed on.
Furthermore, civic groups, including the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions, joined the effort.