The Korean government decided, in 2016, to introduce a capital gains tax (CGT) on Kospi derivatives, both to secure tax revenue and to restrict speculative trading. We take advantage of a delay between the taxation of Kospi and Mini-Kospi derivatives to apply Difference-in-Differences to assess...

After lively debates on whether there was too much trading on the Korean derivatives market, the Korean government decided to introduce, in 2016, a capital gains tax on Kospi 200 futures and options. The stated goals were both to secure tax revenue and to restrict speculative trading. This tax...