South Korea: Proposes Tax on Unrealized Gains

South Korea proposed taxing unrealized gains on stocks and real estate at a Democratic Party forum, directly sparking the Kospi 10% plunge that tripped circuit breakers on June 23 and earned the label Black Tuesday. Lawmakers extended 2026 wealth tax escalation from February's real estate exemption cut to 800 million won and April's long-term deduction abolition into explicit stock paper-gain taxation, breaking from current rules that tax only realized profits. Samsung and SK Hynix dropped over 12% each as leveraged retail positions unwound, while the Netherlands' scrapped 36% unrealized gains levy from February 2026 served as immediate precedent. Quarter-end rebalancing pressure, hawkish Fed signals, and yen carry trade disruption amplified the selloff across global equities.