ID :
109725
Thu, 03/04/2010 - 10:59
Auther :

S. Korean business lobby group opposes Tobin tax

By Nam Kwang-sik

SEOUL, March 4 (Yonhap) -- A South Korean business lobby group spoke out Thursday against the introduction of a Tobin tax, saying it is too early for the nation to implement the tax aimed at fending off speculative financial transactions.

Named after the late Yale economist James Tobin, the tax would be imposed on
international short-term capital movements. Supporters have called on the
government to implement the tax to dampen volatility in foreign exchange markets,
as well as to raise money that can be used for aid to the world's poor or to help
fund United Nations programs.
"Capital restrictions without international coordination are very difficult to
implement successfully. It will not be too late for South Korea to introduce the
Tobin tax after first building international consensus on the issue," the Korea
Chamber of Commerce and Industry (KCCI) said in a report.
The International Monetary Fund and the Group of 20 leading economies are
discussing whether to implement the tax, the chamber added. Most countries,
excluding Brazil, have yet to adopt the system.
Any implementation of independent capital restrictions without international
coordination may cause other forms of capital inflow into South Korea that could
increase fluctuations in the local stock market, the chamber said.
As South Korea's economy remains vulnerable to external factors, the government
should keep close tabs on whether governments around the world move to introduce
the Tobin tax, the KCCI said.
ksnam@yna.co.kr
(END)

X