South Korea's financial regulator has decided to cut the tax rate for stock transactions this year, in a bid to prop up local stock markets.

According to the Financial Services Commission on Thursday, the trading tax for KOSPI-listed and KOSDAQ-listed stocks will be reduced from zero-point-three percent to zero-point-25 percent.

The tax rate for non-listed stocks will be cut from zero-point-five to zero-point-45 percent, while the rate in the KONEX market for small and medium-sized enterprises(SMEs) and venture companies will go from zero-point-three to zero-point-one percent.

There have been calls for adjustments to the current tax system as South Korea is the only Organization for Economic Cooperation and Development member nation that imposes both the stock transaction and capital gains tax.

While the government is preparing a mid to long-term tax reform plan, a finance ministry official said the idea of scrapping the stock transaction tax is not being considered.