SEOUL, Sept. 23 (Yonhap) — South Korea’s stock transaction tax revenue is expected to touch a new all-time high this year on a spike in trading volume, data showed Wednesday.
The transaction tax for shares listed on the main KOSPI market comes to 0.10 percent of the trading value, with the rate for secondary KOSDAQ shares reaching 0.25 percent. Taxes are levied on transactions between December and November.
The turnover of the country’s main and secondary bourses stood at 4,030 trillion won (US$3.47 trillion) between December last year and Friday, with the daily amount coming to 20.1 trillion won, according to the data from the Korea Exchange and the National Tax Service.
In light of the daily turnover, this year’s trading volume subject to stock transaction taxes is estimated to amount to 4,977 trillion won, up about 120 percent from a year-earlier period.
The country’s stock trading tax revenue for this fiscal year is thus forecast to soar to a new high of 8.8 trillion won, more than double last year’s figure and far higher than the previous record of 6.2 trillion won in 2018.
The sharp rise in this year’s turnover resulted from individual investors’ massive buying. Retail investors’ cumulative trading volume amounted to 2.884 trillion won this year as of Friday, or nearly 75 percent of the total.
Meanwhile, the government has said it plans to lower the stock transaction tax by 0.02 percentage point next year and 0.08 percentage point in 2023.