SEOUL - South Korea planned to impose a new tax on derivative trade starting 2016 in a bid to expand tax revenue and promote fair taxation, the finance ministry said Wednesday.

According to a revised tax bill unveiled by the Ministry of Strategy and Finance, a 0.001 percent tax will be levied on KOSPI200 index futures trade, and a 0.01 percent tax will be charged on KOSPI200 index options transaction, to take effect from January 1 2016.

A tiny tax will be imposed on transaction of the index futures and options, which account for around 96 percent of derivative trade on Seoul bourse, with a grace period of three years as part of efforts to minimize the potential negative impact on the market, said the ministry.

The bill, which includes tax imposition on derivative trade, was passed through the parliamentary sub-committees last year, but it was automatically repealed on the plenary session this year with the end of lawmakers' tenure.