S. Korea's new finance minister cautious on adopting Tobin tax

South Korea's new finance minister said Saturday that it needs to be cautious of adopting the so-called Tobin tax, indicating that such a measure could trigger a capital outflow.

The South Korean government said earlier that the country may move to tighten its regulation on capital flows in and out of the country amid worries that growing volatility in the currency market could hurt the country's overall economic stability.

As part of the new measures, the government said it is considering introducing taxation on foreign currency transactions, called the Tobin Tax, in order to ease market fluctuations caused by an infusion of hot money.