Woofun AI reports that members of the South Korean National Assembly from the Democratic Party, Progressive Party, and Social Democratic Party convened to discuss transitioning to 'comprehensive income taxation.' This proposal mandates taxing substantial net asset appreciation, including unrealized gains on stocks and real estate, irrespective of whether the assets have been sold. The market reaction was immediate and severe, with the KOSPI plummeting by 9.99% and triggering a circuit breaker, led by declines in Samsung Electronics and SK Hynix.

Lee Sang-min, a senior researcher at the Korea Institute of Public Finance, highlighted that taxing only at realization creates a 'lock-in effect' that hinders capital efficiency. To address these concerns, the forum proposed a gradual implementation path. This includes recognizing unrealized gains as income but deferring tax obligations until realization or allowing postponed payments with interest. For real estate and unlisted stocks, current realization-point taxation may be maintained, or pilot programs may target high-net-worth holders.