SEOUL, May 20 (Korea Bizwire) — South Korea’s securities transaction tax revenue will likely shoot up in 2015 from a year earlier as the recent stock market rally has led to explosive growth in trading volume, industry data showed Wednesday.
According to the data, the government is expected to collect some 4 trillion won (US$3.67 billion) in securities transaction taxes this year, up sharply from 3.1 trillion won last year.
“A conservative estimate for the tax revenue stands at the lower 4 trillion won range for this year,” said Lee Hyo-seob, a researcher at the Korea Capital Market Institute. “The amount could reach the upper 4 trillion won level.”
Currently, a 0.3 percent tax is imposed on transactions of stocks and other securities.
The tax revenue had been on a steady decline since 2011 amid a stock market slump. After peaking at 4.3 trillion won in 2011, the revenue fell to 3.5 trillion won in 2012 and 3.1 trillion won in 2013.
The expected jump in the securities transaction tax revenue stems from the recent bull run of the stock market, which has resulted in a surge in trading volume.
The daily turnover of the nation’s main and secondary stock markets averaged 8.6 trillion won in the first three months of the year, up 17.8 percent from the same period a year earlier.
In April, when the benchmark KOSPI hit a four-year high of 2,173 points, the average turnover soared 91.2 percent on-year to 10.9 trillion won.
During the first 19 days of May, the amount stood at 9 trillion won, an over 60 percent increase from 5.6 trillion won a year earlier, according to the data.