Special Rural Development Tax to be Exempted from Imported Gold Traded in the KRX Gold Market
The Korea Exchange (KRX) announced that the special tax for rural development that had been imposed on the imported gold to be traded in the KRX gold market (a gold spot market operated by the KRX) will be exempted with effect from March.
*Article 4, Paragraph 6, Item 1 of the Enforcement Decree of the Act on Special Rural Development Tax was amended. (Date of implementation: February 27, 2015)
Since the suppliers of gold bullion for the KRX gold market were expanded to a large number of importers*, the supply of gold bullion is expected to be facilitated further, thus promoting competition in the supply of gold bullion.
With the abolishment of the special rural development tax (0.6%) over gold traded on the KRX gold market, the price of on-market supply is expected to be formed at a level below the wholesale price of the OTC gold market.
* Currently, 11 companies are qualified for importing and supplying gold bullion for the KRX gold market. A company intending to have the tariff and the special rural development tax exempted from gold imports should file an application for the tariff exemption recommendation to the Korea Exchange.
The trading volume of gold in the KRX gold market from March 24, 2014 (the date of market launch) to February 26, 2015 (current) is at 1,365 kg. Investors can trade gold through 11 securities firms*.
* Daishin Securities, KDB Daewoo Securities, Mirae Asset Securities, Samsung Securities, Shinhan Investment Securities, NH Investment Securities, Yuanta Securities, Kiwoom Securities, Hana Daetoo Securities, Korea Investment & Securities, and Hyundai Securities
Source: Korea Exchange (KRX)
