Many market participants believe that the South Korean market has also been weighted down by the government’s new proposal to tax unrealised gains. Introduced on Tuesday, the proposal seeks to treat unrealised gains from assests such as stock and real estate as actual taxable income.
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The South Korean market fell 10% on Tuesday in what was dubbed “Bloody Tuesday,” with the new proposal adding to concerns of the overstretched AI rally.
The government’s proposals would lead to significantly higher costs for investors, especially for foreign institutional investors, who have been heavily investing in the South Korean market.
Source: Indian Express
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