Delisting Sell vs Hold After-Tax Recovery Calculator

Why compare delisting sale prices and after-tax recovery?

This calculator uses Korean rules for 2026 and is intended for a Korean resident individual holding ordinary domestic shares.
A higher liquidation-trading price does not by itself settle the comparison with a later OTC sale.
Shareholder classification, trading venue, same-year taxable share gains, direct costs and evidence can all change the result.
Treating every domestic exchange loss as deductible against foreign gains can substantially overstate a tax saving.

Prepare holdings, basis and price evidence

Use the broker’s or intermediary’s actual commission and add only separate, documented direct disposal expenses.
Avoid counting the same cost twice.
Mark unsupported figures as assumed rather than confirmed.
A pending result means that evidence or tax assumptions are incomplete, not that tax is zero.

Exchange versus unlisted-share taxation

Income Tax Act Article 94(1)(3) includes domestic listed shares disposed of by major shareholders and certain off-exchange disposals by minor shareholders.
A minor shareholder’s ordinary exchange liquidation-trading gain or loss is excluded from the taxable share pool here.
A general direct OTC disposal after delisting is assessed under the unlisted-share rules.
Confirm listed and unlisted major-shareholder classifications separately because their tests can differ.

These national rates follow Income Tax Act Article 104.
The corresponding local income tax adds the equivalent of 10% of national tax, producing combined marginal rates of 11%, 22%, 27.5% or 33%.
The ordinary major-shareholder calculation applies 20% to the first KRW 300 million of tax base and 25% only to the excess.
The calculator does not certify SME or major-shareholder status.
The K-OTC exemption for qualifying SME or mid-sized-company minor-shareholder disposals is outside this general direct-OTC model.

Transaction costs and incremental tax

For 2026, KOSPI uses 0.05% securities transaction tax plus 0.15% special rural development tax, totaling 0.20%.
KOSDAQ uses 0.20% and KONEX 0.10%.
General direct OTC transfers use 0.35% under Securities Transaction Tax Act Article 8.
Do not add KOSPI rural tax again as a separate expense.
Commission and direct costs assume documented deductible disposal expenses; broker collection and filing rounding can differ from this unrounded planning model.

The baseline and with-sale figures are annual assessed national and local tax before credits and prior payments.
A negative increment means a reduction in annual tax burden; a positive increment means additional tax.
The displayed tax-saving figure is already included in that increment and must not be added a second time.
Final tax payable or refunded after foreign tax credits, relief and previous payments is outside the model.

Same-year losses and the KRW 2,500,000 deduction

Income Tax Act Article 102 separates the taxable share-income group from other asset groups.
Enforcement Decree Article 167-2 offsets losses against income subject to the same rate first, then against income at different rates.
This worksheet supports one common statutory domestic rate regime and a foreign-share pool taxed at 20%.
It adds the focal taxable disposal to domestic net income first, then applies any remaining domestic loss against positive foreign income, or the reverse.

Other domestic net income must share the compared taxable disposal’s statutory rate regime.
Additional domestic rate regimes or relieved income require separate review; leave the scope confirmation unchecked.
Exclude exempt domestic exchange losses, dividends, property, derivatives and prior-year losses.
Unused losses are shown only as unused; they are neither cash payments nor a carryforward into next year.

How to use the worksheet

1. Check total holdings, compared shares, acquisition price and total acquisition costs.
   Do not add costs already included in the price a second time.
   
2. Enter the exchange, assumed liquidation-trading price and selling expenses, then confirm shareholder status at that disposal.
   The example is fictional and is not a current quote or notice.
   
3. Choose whether a paid OTC sale is assumed, enter its price, costs, unlisted classification and tax year.
   Use continued holding if there is no buyer.
   
4. Enter other same-year taxable share gains and the actual deduction order.
   Confirm the supported tax scope and evidence separately from reviewed liquidation total tax.
   
5. Compare sale cash and annual tax before and after the disposal alongside after-tax recovery.
   Resolve pending assumptions and save the worksheet for a broker or tax discussion.
   

Changing an input hides the previous result, preventing a stale figure from appearing current.
TXT export retains quantity, evidence status, notes, dates and the financial breakdown.
Printing treats notes as text.
The calendar contains no stock name or holding amount, and is enabled only after the notice start, end, delisting and checked dates are confirmed.

Worked example: cash received versus tax saving

Assume 1,000 shares acquired at KRW 10,000 each, with no acquisition costs, selling commission or separate direct expenses.
The assumed KOSDAQ exchange sale is KRW 500 per share and the later direct OTC sale is KRW 100 per share.
The shareholder is minor, the company is non-SME, and other 2026 taxable foreign share gains are KRW 10,000,000 with no other domestic gains.
A genuine paid transfer and documented basis are assumed; no OTC execution price is guaranteed.

Interpreting the OTC break-even price

The break-even price makes the OTC after-tax recovery reference equal to the exchange recovery for the same quantity.
The search holds costs, annual gains, rates and deduction order fixed, within KRW 1 to KRW 10,000,000 per share.
Changing the price also changes the taxable loss and remaining tax saving, so this differs from matching sale cash alone.
It is a mathematical boundary assuming a buyer, not a recommended sell order.

Continued holding and selling in another year

Delisting alone does not establish a share disposal loss.
If shares remain held without a buyer, distinguish current cash recovery from their uncertain future value.
Continued holding leaves taxable OTC gain, tax saving and after-tax recovery pending.
Zero OTC sale cash means no sale occurred; it does not assign a fair value of zero to the retained shares.

The KRX guide describes liquidation trading within up to seven trading days, with no price limit and periodic single-price execution.
The individual notice controls dates, halts, resumptions and cutoffs.
Do not generate an end date by adding seven calendar days.
Recheck any saved calendar entry and broker cutoff after an amended disclosure.

Liquidation distributions and filing preparation

• Retain acquisition records, the sale contract, payment evidence and share-transfer or ownership-registration records.
  
• Reconcile transaction tax, commission and direct contract expenses against evidence and check for duplicate costs.
  
• Check domestic taxable-share half-year preliminary filing even for a loss, and next-May final filing where aggregation is required.
  
• Related-party undervalue, artificial nominal contracts and transfers without genuine consideration require separate review.
  

A large apparent tax saving does not make a scenario executable when no OTC buyer can be found.
Consider the waiting period, interim cash needs and counterparty performance.
The worksheet supports comparison and preparation; it is not a tax return, trade authorization or tax-status determination.

Frequently asked questions