Hard on the heels of the rather limited French extension to taxes on financial transactions, the South Korean government has announced plans to start taxing index options and futures. Set low (0.01% on options and 0.001% on futures – because margins are so low), the new taxes complement Stamp Duty on share sales of 5%, ten times the level of the UK version.
Extending existing Stamp Duty to derivatives is exavtly what the Robin Hood Tax campaign has been urging on UK politicians and now on the French Government, and although South Korea has a smaller financial market than Europe, it is a significant move because the Asian economic powerhouse is a G20 member state.
Another one bites the dust, and the Robin Hood Tax moves a step closer. When will UK and US politicians feel comfortable with making a move themselves?