Market rout reignites concerns over South Korea investment tax

File pic: Daewoo Securities Co employees work in front of monitors displaying the Korea Composite Stock Price Index or Kospi. — Bloomberg

SEOUL: A stock market rout that wiped $140 billion off South Korea's KOSPI index on Monday may accelerate the government's efforts to scrap a proposed tax on stock trading income amid concerns of a market dominated by retail investors.

President Yoon Suk Yeol has been trying to secure approval from the main opposition party for his plan to eliminate the tax, which would impose a levy of at least 20% on trading income from stocks and bonds if annual capital gains exceed 50 million won ($36,325) from 2025.