As announced last year, and effective from the 2024 tax year, there is a new employer reporting obligation on stock-based compensation (“SBC”) provided to employees in South Korea. The reporting requirement applies where an employee is granted or exercises stock-based compensation in a foreign company.
For the 2025 tax year, the due date of the SBC reporting is 10 March 2026.
The new employer reporting obligation on SBC provided by foreign companies to employees in South Korea applies where an employee is granted or vesting/exercises stock-based compensation in a foreign company, including (but not limited to) awards such as stock options, restricted share units (RSUs), employee share purchase plans (ESPPs) or bonuses awarded in shares. Where applicable, the local Korean entity is required to submit a report to the Korean tax authorities by 10 March 2026 for awards granted or shares delivered on vesting/exercise in the 2025 year with the following information:
• details of grants and exercise of the SBC
• gains resulting from the exercise of SBC
• personal information of the relevant executive or employee
There is no requirement to provide a separate statement to employees – the report only needs to be submitted to the Korean tax authorities by 10 March 2026.
Our tax team is available to support with key personnel tax-related questions and withholding tax card applications as well as advising employers on the impact of the upcoming changes.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Danielle Suh
Partner
Na Young Hwang
Director
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Further information on Vialto Partners can be found here: www.vialtopartners.com
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