KRX Gold Market Offers Golden Opportunities to Gold Investors

Gold investment through the KRX gold market is the most economical way to buy gold in Korea. (Photo: KRX)

The Korea Exchange (KRX) is the only general exchange in Korea where investors trade stocks, derivatives, and government bonds. The KRX gold market opened with approval from the Financial Services Commission to promote the growth of a transparent gold market in Korea on March 24, 2014.

Gold traded in the KRX gold market is of high quality and has 99.99 percent purity certified by the Korea Minting and Security Printing Corporation Korea Minting, Security Printing & ID Card Operating Corp (KOMSCO).

There are several methods of gold investment but gold investment through the KRX gold market is the most economical way to buy gold. Gold prices in the KRX gold market are formed at 100.1 to 100.4 percent of international gold market prices.

In addition, if a person orders gold online via the Home Trade System (HTS) of securities firms, he or she can buy and sell gold at a low trade commission of around 0.2 percent.

This is the lowest compared to other investment methods, including one percent of gold banking at banks.

The biggest advantage of the KRX gold market is that no tax is slapped on gold trading profits. This is a benefit that cannot be found in any other means of investment.

For reference, gold banking and gold ETF trading gains are taxed as dividend income, and 15.4 percent of profits are imposed as a withholding tax.

Of course, gold trading profits are not subject to comprehensive financial income taxation because no tax is levied on gold trading profits.

After all, the KRX gold market is the only government policy market that can receive tax-free benefits at low transaction costs. It is the most efficient market for both investors who expect investment returns and investors who want to buy real gold.