Korea Expansion Agency “KEA”

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Subject [Aug. 2023 #1] Korea's New Stock-Based Compensation Reporting

Attention business professionals! 🌍 Explore the latest update in Korea's financial landscape. The Korean government is considering a proposed requirement that could reshape how stock-based compensation is reported.

📊 Focus: This requirement aims to encompass comprehensive details of overseas stock-based compensations granted by foreign controlling shareholders.

📋 Details to Include:

  • Transaction specifics: Granting, exercising, and payment details of stock-based compensation.
  • Income from stock option exercises.
  • Personal information of executives and employees.

🔍 Who's Impacted:

  • Korean Companies: Overseas controlling shareholders with 50% or more interest.
  • Korean PE of Foreign Companies: Includes head offices, other PEs, or foreign companies with 50%+ interest.

💼 Compensation Types: Stock options and rewards in shares or equivalent funds.

🗓️ Dates to Remember:

  • Submissions due by March 10th of the year after compensation exercise.
  • Applies to exercises or payments on or after January 1, 2024.

Please note that these details could be subject to change during the review process by the Korean Congress.

#KEAInsights #StockBasedCompensation #FinancialReporting #KoreanBusinesses #GlobalCompliance

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