Seoul: The government will introduce a new 0.05 percent transaction tax on KOSPI stock trades next year, the finance ministry said Monday. This marks the first time the benchmark market will impose such a levy.

According to Yonhap News Agency, under the revised tax law approved in July, the tax rate on KOSPI transactions will rise from zero percent to 0.05 percent. The existing separate 0.15 percent agricultural and fishery village special tax will remain unchanged.

Additionally, rates for the smaller KOSDAQ market and the K-OTC platform for unlisted firms will increase from 0.15 percent to 0.2 percent, as stated by the ministry. The changed rates are set to take effect on January 1.