Establishment of the KRX Gold Market
KRX opened a gold spot market on March 24, 2014, to support the government’s policy to further develop domestic jewelry sector, in an effort to induce the underground gold trades into an open market and thus enhance the reliability of gold prices.
Key advantages of Participating at the KRX Gold Market
Authentic gold with quality certifications
Only the gold with purity of 99.99% that was produced or imported by the KRX-designated companies and passed quality-certification process by the Korea Minting, Security Printing & ID Card Operating Corp. (KOMSCO) is eligible for the trading at the KRX gold market.
Safe transaction and storage
KRX which operates stocks, bonds and derivatives markets provides a safe venue for gold trading with its expertise and credibility. Also, gold is safely kept by the Korea Securities Depository (KSD).
Low service fees
For gold dealers
No trading fee is charged for the gold dealing members of the gold market for the time being. Starting April 1st, 2016, trading fee and member fee will be charged.
For investors
The trading fee charged by securities firms and futures firms is 0.2% for on-line and 0.4% or lower for off-line trading, which is lower than gold banking and actual gold purchases.
Tax incentive
For gold dealers
Corporate tax (income tax) deduction can be provided for physical gold dealers depending on the transaction (deposit and withdrawal of physical gold) record at KRX gold market.
For investors
There is no tax levied on the capital gain realized on KRX gold. Also, the gold trades at KRX gold market are exempt from value added tax (VAT). However, 10% VAT is imposed on the physical withdrawal from the KSD.
주의Other gold investment products such as gold fund and gold banking are subject to 15.4% income tax on capital gains.
Simple and real-time trading in small-lots
Since gold is traded in one gram units, retail investors can easily participate in the market through HTS or smart phones to trade gold in small amount (KRW 40,000~ 50,000).
Fair and transparent pricing
The KRX gold market prices are determined by the participation of buyers and sellers (order matching or single price auction) in a fair and transparent manner.