South Korean Tax Proposal Sparks Global Market Turmoil

The South Korean financial market experienced a sharp selloff on Tuesday after lawmakers discussed a proposal to tax unrealized gains on stocks and real estate. The discussion sparked panic among investors, adding pressure to an already fragile global market environment.

The benchmark Kospi plummeted 10%, triggering a circuit breaker for the second time this month. Major technology stocks led the decline, while concerns over leverage, monetary policy, and global portfolio adjustments amplified the market shock.

Meanwhile, the crypto market is bracing for potential impact from the proposed tax on unrealized gains. The current 8-hour average funding rate for BTC stands at a relatively low 0.0028% according to Coinglass data. However, major exchanges like Binance and Bybit have higher fees of 0.0022% and 0.0033%, respectively.