South Korea Stocks Plunge on Unrealized Gains Tax Proposal

South Korean equities tumbled on reports that lawmakers from multiple parties and civic groups held a National Assembly forum on June 23, advocating a tax on unrealized gains from stocks and real estate. The proposal, still at the discussion stage and not yet adopted as government policy, triggered a sharp market decline dubbed 'Black Tuesday' by local media.

According to Seoul Economic Daily, the forum was organized to explore the feasibility of taxing paper profits, which has drawn strong opposition from investors. The proposal remains under debate and has not been formally introduced as legislation.

Market participants reacted negatively, driving the KOSPI index lower amid concerns that such a tax could discourage investment and reduce liquidity.