📈 Stock Option Tax Calculator

※ Based on 2025

Automatically calculates earned-income tax on stock option exercise and capital-gains tax on sale, reflecting venture-company tax benefits.

Stock Option Tax Results

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Exercise benefit — Earned-income tax at exercise — Capital gain — Capital-gains tax — Total tax payable —

GUIDE

Stock Option Tax Info

What is a stock option?

A stock option grants employees the right to buy company shares at a predetermined exercise price at a future point. Widely used by startups and venture companies to attract and motivate talent, it lets employees capture the gap between the exercise price and the market price as the company grows. For example, an option granted at an exercise price of 10,000 KRW exercised when the market price is 50,000 KRW yields a 40,000 KRW gain per share. Exercising 1,000 shares produces a 40 million KRW exercise benefit, which is taxed as earned income.

Taxing the exercise benefit (earned-income tax)

The exercise benefit is classified as earned income and taxed at the comprehensive income tax rate (6%-45%). It equals (market price at exercise - exercise price) × number of shares and is combined with your salary. Venture companies receive a 50% exemption on the exercise benefit (up to 30 million KRW per year). Venture status is verified by a Ministry of SMEs and Startups certificate.

Taxing the capital gain (capital-gains tax)

Gains from selling shares acquired via stock options are taxed as capital gains: (sale price - market price at exercise) × number of shares. Major shareholders are taxed at 22% (24.2% including local income tax). The major shareholder threshold for listed companies is 1% ownership or 1 billion KRW market value. Minor shareholders are exempt on listed shares but taxed on unlisted shares.

Venture company tax benefits

A 50% exemption applies to the exercise benefit (up to 30 million KRW per year), and employee stock ownership association contributions are favored. A venture certificate is required. This calculator is based on Korean tax law.

Frequently asked questions

How is the exercise benefit calculated?

Exercise benefit = (market price at exercise - exercise price) × number of shares. It is taxed as earned income at 6%-45%. Venture companies receive a 50% exemption (up to 30 million KRW per year).

How is the capital gain taxed?

Capital gain = (sale price - market price at exercise) × number of shares. Major shareholders pay 22% (24.2% with local income tax); minor shareholders are exempt on listed shares.