By Kim Bo-eun
The government will lower the stock transaction tax rate of the KOSPI and KOSDAQ by 0.05 percentage points starting June 3, the finance minister said Sunday.
Minister of Economy and Finance Hong Nam-ki made the remarks in a press conference in Washington, D.C., where he attended a meeting of finance ministers and central bank governors of G20 nations.
The announcement was made after the government unveiled the plan in March, which is intended to vitalize capital markets.
The stock transaction tax rate of the KOSPI and KOSDAQ will be lowered to 0.25 percent from the current 0.3 percent.
For KONEX, the country's smallest exchange, the rate will be lowered by 0.2 percentage points, from 0.3 percent to 0.1 percent.
For unlisted stocks, the government will revise related regulations this year to enable a 0.05 percentage point cut in the transaction tax rate starting next year, from 0.5 percent to 0.45 percent.
Meanwhile, the minister also said the government will make a decision on an extending the consumption tax cut for vehicle buyers, after reviewing car sales and industry circumstances. The tax cut expires at the end of June.
Hong also said the government will unveil a revised alcohol tax plan in early May. The minister said earlier the government is reviewing imposing specific duties that do not raise the prices of liquor.