By Simon Miller

South Korea is to introduce a Tobin tax on popular stock price index options and futures transactions from 2016, its finance ministry announced today.

Kospi 200 futures contracts' value will be taxed at 0.001% the premiums for Kospi 200 option contracts will see a 0.01% tax starting from 1 January 2016.

In a statement, the finance ministry said the financial transaction taxes would raise around KRW100bn (£57m) in tax revenue per year.

Kospi 200 derivative contracts are among the most heavily traded products in the year and the measure is designed to bring derivative taxation in line with other securities such as share transactions which face a 0.3% to 0.5% tax.

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