Korea to Cut Stock Transaction Tax

The government will cut taxes on stock transactions this year to support the secondary market for venture firms, as well as promote venture capital.  The new tax rates are as follows:

• A cut of 0.05 percentage points for stocks listed in KOSPI and KOSDAQ to 0.10 percent and 0.25 percent, respectively
• A cut of 0.05 percentage points for unlisted stocks to 0.45 percent
• A cut of 0.2 percentage points for KONEX stocks to 0.10 percent to promote venture capital
• The special tax for rural development of 0.15 percent, levied on KOSPI transactions, to remain unchanged

The government will also change capital gains taxes on stock transactions, and will impose taxes only on net gains earned throughout the year, losses deducted from the taxable sum.  The change will allow transfer of losses between domestic and foreign stock transactions, and will take effect from January 1, 2020.