South Korea calls off capital gains tax changes
Published: 06 February 2018
The Korean Ministry of Strategy and Finance (MOSF) is reported (Financial Times, Reuters) to have announced that it will not proceed with the enactment of proposed changes to the capital gains tax treatment of foreign investors in listed Korean securities (see https://www.aima.org/article/korea-capital-gains-tax-on-listed-securities-for-foreign-investors.html). Accordingly, the current ownership threshold of 25% in respect of the capital gains tax exemptions for non-resident investors on their sale of listed shares on the Korea Exchange remains in place. MOSF will consider whether any changes remain required in the 2019 round of tax legislation. AIMA was one of a number of industry bodies (representing both the buy side and the sell side) to make representations to MOSF on this issue. For further information, please contact Paul Hale or Anvit Jain.