South Korean Parties and Unions Propose Tax on Unrealized Gains from Stocks and Real Estate

CoinFeed, June 23 – According to Yonhap News, lawmakers from South Korea’s ruling camp and multiple labor and social groups have proposed including unrealized gains (paper profits) from assets such as stocks and real estate in the comprehensive income tax base. They advocate taxing based on actual economic capacity rather than at the point of sale, aiming to narrow loopholes in capital gains taxation. Scholars at the meeting noted that taxing only upon asset sales leads taxpayers to delay transactions, creating a “lock-in effect” that hinders capital from flowing to more efficient areas. The proposals include: in principle recognizing unrealized gains as income, but allowing the tax liability to be deferred until the asset is sold with interest; maintaining taxation upon realization for real estate and unlisted shares where market value is difficult to assess; or limiting the new system to high-net-worth individuals and specific financial assets, while strengthening the tax burden on high-income capital earners.