Article 117 (Exemption from Securities Transaction Tax)

In any of the following cases, the securities transaction tax shall be exempted. <Amended by 1999.8.31, 1999.12.28, 1999.12.31, 2000.10.21, 2001.5.24, 2001.12.29, 2002.12.11, 2003.12.30, 2004.12.31, 2005.7.13, 2006.12.30, 2008.2.29, 2008.12.26, 2009.5.21, 2010.1.1, 2010.12.27, 2011.5.19, 2011.12.31, 2013.1.1, 2013.5.28, 2014.1.1, 2014.5.21, 2014.12.23, 2015.7.24, 2015.12.15, 2015.12.22, 2016.12.20, 2017.12.19, 2018.12.24, 2019.11.26, 2020.2.11, 2020.2.18, 2020.6.9, 2020.12.29, 2021.12.28, 2023.6.20, 2025.12.23> 1. When a venture investment company, startup incubator, venture investment partnership, or venture investment purpose company transfers shares or equity acquired by directly investing in a startup company or venture company. 2. When a new technology business financer or new technology business investment partnership transfers shares or equity acquired by directly investing in a new technology business entity. 2-2. When a food and agriculture investment partnership transfers shares or equity acquired by directly investing in a startup company or venture company. 2-3. Deleted <2020.2.11> 2-4. When a venture investment company, new technology business financer, startup incubator, investment partnership under subparagraphs 1, 2, and 2-2, or venture investment purpose company transfers shares or equity acquired by directly investing in a KONEX-listed company (limited to small and medium-sized enterprises within two years after listing). 2-5. When a financial investment business operator under Article 8 (1) of the 「Capital Markets and Financial Investment Business Act", as prescribed by Presidential Decree, transfers shares, as categorized below, in derivative transactions defined in Article 8-2 (4) 2 of the same Act, for the purpose of fostering the derivative market, considering transaction value, market capitalization, turnover rate, etc., and as prescribed by Presidential Decree. Provided, That this shall be limited to cases prescribed by Presidential Decree, such as transfers made to hedge against risks from price fluctuations of derivatives. a. In the case of derivatives whose underlying asset is a stock price index: Shares constituting the stock price index, which is the underlying asset of the derivative. b. In the case of derivatives other than those in subparagraph a: Shares that are the underlying asset of the derivative. 3. When a financial investment business operator under Article 8 (1) of the 「Capital Markets and Financial Investment Business Act", as prescribed by Presidential Decree, transfers shares, as prescribed by Presidential Decree, for the purpose of fostering trading of securities in the securities market under Article 8-2 (4) 1 of the same Act and in a multilateral trading facility under Article 8-2 (5) of the same Act, considering transaction value, market capitalization, turnover rate, etc. 4. When a private equity fund for startups and ventures transfers shares or equity acquired by directly investing in a startup company, venture company, or KONEX-listed company (limited to small and medium-sized enterprises within two years after listing), or by investing through an investment purpose company under Article 249-23 (3) of the 「Capital Markets and Financial Investment Business Act." 5. When the Head of Postal Business under Article 2 (2) of the 「Special Act on Postal Business Operations" and a corporation managing and operating funds established under the laws specified in Table 2 of the 「National Finance Act" (hereinafter referred to as "fund manager" in this subparagraph) transfers shares that are the underlying asset (meaning shares constituting the index, in cases where the underlying asset of the derivative is a stock price index; hereinafter the same applies in this subparagraph) for the purpose of obtaining profit from price differences of derivatives (hereinafter referred to as "derivatives" in this subparagraph) and the underlying shares, as prescribed by Presidential Decree, in connection with derivative transactions, with the aim of profiting from the price difference between derivatives and the underlying shares. Provided, That for fund managers, this is limited to shares listed on the KOSDAQ market under the 「Capital Markets and Financial Investment Business Act." 6. Deleted <2018.12.24> 7. When a non-performing financial institution or a non-performing cooperative or a cooperative at risk of non-performance under Article 2 (3) and (4) of the 「Act on the Improvement of Structure of Agricultural Cooperatives" (hereinafter referred to as "non-performing agricultural cooperative") transfers shares or equity it held, pursuant to prompt corrective action (including prompt corrective action under Article 4 of the 「Act on the Improvement of Structure of Agricultural Cooperatives"; hereinafter the same applies in this subparagraph) or a contract transfer decision, and when a financial institution that received such transfer, or a cooperative and its central cooperative under Article 2 (1) and (2) of the 「Act on the Improvement of Structure of Agricultural Cooperatives" transfers them again. 7-2. When a non-performing cooperative or a cooperative at risk of non-performance under Article 2 (3) and (4) of the 「Act on Prevention and Structural Improvement of Non-performing Fisheries Cooperatives" transfers shares or equity it held, pursuant to prompt corrective action (including prompt corrective action under Article 4-2 of the same Act; hereinafter the same applies in this subparagraph) or a contract transfer decision, and when a cooperative and its central cooperative under Article 2 (1) and (2) of the same Act, which received such transfer, transfers them again. 7-3. When a non-performing cooperative or a cooperative at risk of non-performance under Article 2 (3) and (4) of the 「Act on the Improvement of Structure of Forestry Cooperatives" transfers shares or equity it held, pursuant to prompt corrective action (including prompt corrective action under Article 4 of the same Act; hereinafter the same applies in this subparagraph) or a contract transfer decision, and when a cooperative and its central cooperative under Article 2 (1) and (2) of the same Act, after receiving shares or equity from a non-performing forestry cooperative pursuant to prompt corrective action or a contract transfer decision, transfers them again. 8. When the Korea Deposit Insurance Corporation or a resolution financial institution under Article 36-3 of the 「Depositor Protection Act" (hereinafter referred to as "resolution financial institution") transfers shares or equity acquired through the conversion of non-performing loans assumed from financial institutions under any of the following subparagraphs, for the purpose of carrying out the business of resolving non-performing financial institutions under Article 18 (1) 6 or Article 36-5 (1) of the 「Depositor Protection Act", or shares or equity directly acquired. a. Non-performing financial institution under Article 2 (5) of the 「Depositor Protection Act". b. Financial institution at risk of non-performance under Article 2 (6) of the 「Depositor Protection Act". c. Financial institution receiving financial support under Article 38 of the 「Depositor Protection Act". 9. When the Korea Asset Management Corporation, established under the 「Act on the Establishment, etc. of the Korea Asset Management Corporation" (hereinafter referred to as "Korea Asset Management Corporation"), transfers shares or equity acquired through the conversion of non-performing loans assumed from non-performing financial institutions for the purpose of carrying out the business of resolving non-performing financial institutions, or shares or equity directly acquired. 10. Deleted <2010.1.1> 11. Deleted <2006.12.30> 12. Deleted <2006.12.30> 13. Deleted <2018.12.24> 14. When shares are transferred for the establishment of a newly established company under Article 47-2 of the 「Corporate Tax Act", for mergers under Article 44 (2) or (3) of the same Act, for divisions meeting the requirements of Article 46 (2) or Article 47 (1) of the same Act, or for the comprehensive exchange or transfer of shares meeting all requirements of Article 38 (1) of this Act. 15. Deleted <2010.1.1> 16. When shareholders of financial institutions, etc., and shareholders of companies closely related to the operation of financial institutions and financial business under Article 2 (1) 1 of the 「Financial Holding Company Act", or financial holding companies under the same Act (hereinafter referred to as "financial holding company") transfer shares or exchange shares in accordance with Article 38-2. 17. Deleted <2006.12.30> 18. Deleted <2010.1.1> 19. When the Mutual Savings Deposit Protection Fund established under the 「Act on the Improvement of Structure of Agricultural Cooperatives" and the Agricultural Cooperative Asset Management Company transfer shares or equity acquired through the conversion of non-performing loans assumed from non-performing agricultural cooperatives, for the purpose of carrying out the business of resolving non-performing agricultural cooperatives, or shares or equity directly acquired. 19-2. When the Mutual Savings Deposit Protection Fund under the 「Act on Prevention and Structural Improvement of Non-performing Fisheries Cooperatives" transfers shares or equity acquired through the conversion of non-performing loans assumed from non-performing fisheries cooperatives, for the purpose of carrying out the business of resolving non-performing fisheries cooperatives, or shares or equity directly acquired. 19-3. When the Mutual Savings Deposit Protection Fund under the 「Act on the Improvement of Structure of Forestry Cooperatives" transfers shares or equity acquired through the conversion of non-performing loans assumed from non-performing forestry cooperatives, for the purpose of carrying out the business of resolving non-performing forestry cooperatives, or shares or equity directly acquired. 20. Deleted <2014.12.23> 21. When an exchange-traded fund that tracks an index under Article 234 (1) of the 「Capital Markets and Financial Investment Business Act" transfers shares through trading of securities in the securities market under Article 8-2 (4) 1 of the same Act or in a multilateral trading facility under Article 8-2 (5) of the same Act, to reflect changes in the constituent stocks of the tracked index. 22. When a NongHyup Financial Holding Company under the 「Agricultural Cooperatives Act" transfers shares or equity that were contributed in kind from the Korea Development Bank established under the 「Korea Development Bank Act" pursuant to Article 3 of the Addenda to Act No. 10522, to its subsidiary such as NongHyup Bank. 23. When a corporate financial stability private equity fund under Article 249-22 (1) of the 「Capital Markets and Financial Investment Business Act" transfers shares or equity acquired by directly investing in or investing through an investment purpose company under Article 249-22 (3) of the same Act in a company undergoing financial restructuring as prescribed by Presidential Decree. 24. When shares or equity are transferred in accordance with Article 121-30 (1).

Deleted <2011.12.31>