Tax on spread at exercise.

Tax on sale, subject to an exclusion.

Yes, if reimbursement made by subsidiary to the parent and certain other conditions satisfied.

Exchange control restrictions may impact ability to implement reimbursement arrangement.

Please contact Baker McKenzie for more information.

Income Tax:

Generally, no withholding provided subsidiary does not reimburse parent. Effective 1 January 2024, employer is required to report option income on an annual basis.

Social Insurance Contributions:

Yes, employee and employer social insurance contributions apply. Employer technically required to withhold employee contributions.

Generally, no, as employee exemption should apply.

Korean residents previously could not sell foreign-listed shares through foreign brokers or deposit proceeds abroad, requiring engagement with Korean domestic brokers. However, a recent legislative action promulgated on 5 March, 2024 now, allows Korean resident employees of multinational companies to dispose of overseas-listed securities without using Korean licensed brokers.

Please contact Baker McKenzie for details.

Remittance of funds to purchase shares must be "confirmed" by a Korean foreign exchange bank if funds wired abroad.

Employees may be required to report deposit of proceeds with a value in excess of USD 5,000 into a non-Korean bank account.

Written disclaimer should be included in grant documents to reduce risk of entitlement. Equity income likely will constitute "wages," particularly if there is reimbursement.

Personal Information Protection Act in effect.

Written consent from employees for the collection, use and transfer of data abroad is required and specific data and recipients must be named.