What is the securities transaction tax?

Securities transaction tax is levied on the transfer of shares or equity interests, with the transfer price as the tax base, so it is charged when you sell, regardless of whether you made a profit.

For shares traded on the securities market, the Korea Securities Depository or a similar institution is the taxpayer, and for transfers through a securities firm, that financial investment business entity is the taxpayer; it collects the tax from the selling investor at settlement. Transfers by the State or local governments and transfers of shares listed on foreign securities markets, among others, are not taxed.