Korea transaction tax could halve number of derivatives transactions

Proposal for a transaction tax on futures and options could have a dramatic impact on Korea's derivatives market

Turnover in the derivatives market in South Korea could be reduced by over 50% if a proposed new transaction tax on derivatives is approved, say market participants.

The Korean ministry of strategy and finance announced the government's proposed tax law amendments for 2013 that impose a 0.001% tax on Kospi 200 index futures trades, and a 0.01% tax on Kospi 200 index options transactions, effective