Stock tax end mentioned by FSC chairmanThe head of the financial regulator said Tuesday there is a need to “seriously” consider abolishing a tax on stock transactions amid a sharp decline in Korean stock prices.
Choi Jong-ku, chairman of the Financial Services Commission (FSC), told lawmakers that abolishing the tax could be one measure to breathe new life into the stock markets.
“It is time to seriously review” the idea of abolishing the tax, Choi told lawmakers.
Korea introduced the stock trading tax in 1963, but abolished it in 1971. The tax was reintroduced in 1978.
The tax rate is 0.15 percent for the main Kospi market and 0.3 percent for the Kosdaq market.
The Kospi has fallen nearly 20 percent from the peak earlier this year, hurt by concerns about U.S. rate hikes and an ongoing trade dispute between Washington and Beijing.
Tax revenue from stock transactions reached over 4.5 trillion won ($4 billion) last year, up 8 percent from a year earlier, according to government data.