MSCI says S Korea may harm stock market with tax plan

Chicago

MSCI Inc, whose decisions on stock indices guide the investment of trillions of dollars, said South Korea's proposed changes to capital gains taxes could make the nation's market harder to access.

Under a draft plan, some foreign investors would face capital gains taxes if they hold as little as 5 per cent of a South Korean company's stock, a big change from the current 25 per cent threshold.