Seoul: Shares end 2.3% lower as second wave dents risk appetite

[SEOUL] South Korean shares plunged on Thursday after a surge in coronavirus cases and the International Monetary Fund's downgrade to global economic projections dented sentiment, while the government's proposal to expand its capital gains taxes also weighed.

The Seoul stock market's main Kospi closed down 49.14 points, or 2.27 per cent, at 2,112.37.

Several US states reported record jumps in Covid-19 cases, while the World Health Organization expects the number of global cases to touch 10 million next week.

South Korea proposed expanding its capital gains taxes to include a larger number of affluent stock investors. It would also mark a significant expansion of current rules as capital gains taxes are only applied to large shareholders with stakes exceeding 1 per cent or US$831,373 of listed stocks.

Foreigners were net sellers of US$229.49 million worth of shares on the main board.

REUTERS