globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

18 April 2019

Korea proposes reduced securities transaction tax rates on securities traded on the stock exchange

On 21 March 2019, Korea’s Ministry of Economy and Finance announced proposals (the Proposal) to reduce securities transaction tax rates on securities traded on Korea’s stock exchanges, to mitigate investors’ tax burden, increase venture capital investments and revitalize capital markets. The Proposal will become effective as of 3 June 2019 following public hearings held through 13 May 2019.

The following table summarizes the proposed changes:

Stock exchange
Current rate
Proposed rate

KOSPI Market1

0.15%

0.1%

KOSDAQ Market

0.3%

0.25%

KONEX Market

0.3%

0.1%

The Proposal also reduces the securities transaction tax rate from 0.5% to 0.45% on securities traded over-the-counter or non-listed securities traded. However, this is expected to be included in the 2019 tax reform proposals, which are generally announced in July or August.

Endnote

1. Agricultural and fishery community special tax, rate equal to 0.15%, would also be imposed in addition to securities transaction tax.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Han Young, Seoul
  • Kyung Tae Ko | kyung-tae.ko@kr.ey.com
  • Jeong Hun You | jeong-hun.you@kr.ey.com
Ernst & Young LLP (United States), Korean Tax Desk, New York
  • Shuck Il Cho | shuckil.cho@ey.com
Ernst & Young LLP (United States), Asia Pacific Business Group, New York
  • Chris Finnerty | chris.finnerty1@ey.com
  • Kaz Parsch | kazuyo.parsch@ey.com
  • Bee-Khun Yap | bee-khun.yap@ey.com
Ernst & Young LLP (United States), International Tax Services, New York
  • Paul Kim | paul.kim1@ey.com

ATTACHMENT

Document ID: 2019-5544

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more