South Korea to launch gold trading platform
Adam Pike, News Editor
19 Mar 2014, 10:56 a.m.
A new gold trading platform is to be launched in South Korea on Monday in an attempt to regulate the market and reduce tax invasion.
South Korean consumers own an estimated 720 tonnes of gold and officials believe that 70% of the 100 tonnes traded annually in Korea is done illegally without being taxed.
Authorities are encouraging approved retailors, futures firms and wholesales to join the exchange by offering zero commission fees until March 2015. Gold will be bought and sold just like stocks with 1 gram gold units used to add liquidity with participants being able to take delivery in the form of 1kg bars.
Retail investors will only be able to trade via financial companies and the 10% South Korean value added tax will only be payable when investors take physical delivery.