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This alert provides an update to the alert issued on 27 November (which can be found here) regarding the proposed changes to the application of the exemption to Korean Capital Gains Tax (‘CGT’) applicable to certain listed Korea stocks.

Current situation
Under current rules, gains arising on the transfer of shares in certain listed Korean stocks are exempt from Korean Capital Gains Tax.

Update on new proposal
On 8 January 2018, draft regulations were issued by the Korean Ministry of Strategy and Finance (“MOSF”).

The aim of these draft regulations is to reduce the shareholding ownership threshold at which CGT will apply for non-resident investors on listed securities transactions from 25% to 5%.

Download a copy of our newsalert here.