South Korea's financial regulator said Monday that it will open the gold exchange next year where gold spots can be traded in the public market.
Gold spot market, or gold exchange, will be open in the first quarter of 2014 to allow gold spots to be traded in the public market like listed stocks, according to the Financial Services Commission (FSC).
The introduction came amid growing underground gold transactions to evade value-added taxes. Underground gold trading accounts for more than half of the country's annual gold transactions, the regulator said.
Market players will be licensed members that will meet certain financial requirements. Those will include smelters and importers of gold as well as gold craftsman and distributors.
To stimulate transactions in the new gold market, tariff tax exemption will be offered while providing reduction in corporate and income taxes.