Stock option exercise gains are taxed as wage income if exercised while still employed, or as other income if exercised after leaving the company or via inheritance. The taxable amount is the exercise gain — fair market value at exercise minus the exercise price — and it is attributed to the date of exercise (not the grant date or contract date).
Venture company employees get a special break: exercise gains from options granted on or before December 31, 2027 are tax-exempt up to KRW 200 million per year (capped at KRW 500 million cumulative per company), and any amount above that can be paid in installments over 5 years.
Stock option tax checkpoints
Don't miss the venture-company exemption
If your options were granted by a certified venture company on or before December 31, 2027, exercise gains are tax-exempt up to KRW 200 million a year (capped at KRW 500 million cumulative per company). Confirm eligibility based on the company's venture certification status and your grant date.
Frequently Asked Questions
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