South Korea Opens Gold Trading Market Next Week

Seoul (Mar 23)   South Korea’s financial regulator said Sunday that market to trade Gold on Spot will be opened next Monday to disclose Gold transactions, which were blamed for tax evasion and illegal trading.

The South Korean government unveiled a plan last July to let Gold be traded in an open arena as part of efforts to bring the underground economy to the open and help prevent tax evasion and illegal transactions.

Gold held by South Korean individuals was estimated at around 700 tons, 7X the 104 tons held by the Bank of Korea (BOK), the country’s central bank. Some 70 tons of Gold was known to be traded annually without being taxed.

One gram units of Gold bullion of 99% purity will be bought and sold in the Gold Exchange, which will be run by the stock exchange operator Korea Exchange, according to the Financial Services Commission (FSC).

Physical delivery will be made in 1 kilo bars, with investors required to pay 10% VAT (value-added tax) when taking the physical delivery of Gold bought on the Gold Exchange.

The Gold market will be open from 10 a. to 3 p. and market prices will be provided on a real-time basis.

Eight brokera houses and 49 Gold dealers, including producers, importers and distributors, were allowed to participate in the Gold market.

Retail investors can buy and sell Gold only through the registered brokerages.

Source: Google