Country Profile: South Korea

Financial Transactions Tax (FTT): Yes – tax in place

The Securities Transaction Tax (STT) is imposed on the transfer of stocks of a corporation or interest. The Presidential Decree prescribes the flexible rates of 0.15% for shares traded on the Korea Stock Exchange and 0.15% for shares traded on the Korean Securities Dealers Automated Quotations (KOSDAQ) or the Korea New Exchange (KONEX). For unlisted shares or interest a rate of 0.35% is imposed. The same rate applies on the transfer of shares or interest, but the government is authorized to adjust the tax rate in certain circumstances. OTC transactions settled outside the KOSDAQ are taxed at 0.15%. STT is applicable to both residents and nonresidents but is payable by the seller only.

Source: Centre for Economic and Policy Research

Carbon Price: Yes – Carbon pricing instrument in place

National emissions trading system

• Since: 2015
• Coverage: 74% of emissions
• Price: KRW8,490 (US$6.30)
• Revenue: KRW84,180 million (US$65 million)
• Sectors covered: Electricity and heat, Industry, Transport, Buildings, Waste, Others
• Offsetting: Yes, with quantitative limit

Source: World Bank