South Korean ruling-party lawmakers, along with multiple labor and civic groups, have proposed bringing unrealized gains on assets such as stocks and real estate into the scope of comprehensive income tax.
According to PANews, the proposal argues for taxation based on taxpayers’ actual economic capacity rather than the timing of asset sales, aiming to reduce gaps in capital income taxation.
Scholars participating in the discussion said taxing only when assets are sold can lead taxpayers to delay transactions, creating a “freeze effect” that hinders capital from moving to more efficient areas.
Proposed options include generally recognizing unrealized gains as income while allowing tax obligations to be deferred until the asset is sold, with interest applied during the deferral period. For assets that are difficult to value at market prices—such as real estate and unlisted equity—the proposal suggests maintaining taxation at realization.
Another option would limit the new system to high-net-worth individuals and specific financial assets, while increasing the tax burden on high-income capital earners.
South Korean Lawmakers Propose Taxing Unrealized Gains on Stocks and Real Estate
2026-06-23 12:14:25
Disclaimer:
1. The information provided does not constitute investment advice. Investors should make independent decisions and bear all risks themselves.
2. The copyright of this content belongs to the original author. The views expressed herein are solely those of the author and do not represent the stance or position of this website.
