Stock Lending Net Fees and Recall Planning Calculator

Start with the lending ledger, then compare net fees

An advertised annual lending rate is not your guaranteed annual income.
The actual valuation of lent shares, counted days and rate payable to you are all needed to reconcile a period.
Assuming that every eligible share was lent continuously can substantially overstate small amounts of income.

This Korea-specific 2026 calculator is a statement worksheet for the shareholder who lends domestically listed shares.
It separates cash after actual withholding from an optional settlement assumption and helps prepare a recall request before a voting or other rights date.
Assess fees together with rights handling and your actual broker contract before deciding whether to keep lending.

What the worksheet shows

Records to prepare

• Actual 2026 lent balances, valuations, your payable annual rate, statement counted days and the contract annual day basis.
  Eligible shares and the intermediary’s own total rate are different inputs.
  
• National and local withholding attributable to this ledger, settlement adjustments and cash expenses.
  Prepare dividend substitutes and their related tax separately.
  
• Verified tax-deductible expenses and other taxable miscellaneous income requiring aggregation for the same tax year, including other brokers.
  Exclude this ledger from the other-income field to prevent double counting.
  
• The company and broker-confirmed rights date, required recall business days, whether that date counts as day one, and the receipt cutoff.
  Verify public holidays, substitute holidays and all market or broker closures throughout the covered interval.
  

Unknown is not zero.
Use zero only after confirming that the item is absent, and check the confirmation boxes only after reconciling the relevant period and aggregation scope.
Cash, taxable income and calendar confirmation are deliberately separate.

Fee and cash formulas

Select the actual contract basis of 360, 365 or 366 days.
A leap year does not independently determine what your contract uses.
An unknown basis withholds the total; daily truncation or settlement conventions on actual broker statements may still produce a different amount.

Cash costs represent money actually spent; deductible expenses determine taxable income.
An expense may serve both roles but is not deducted twice from the final cash figure.
Deductible expenses exceeding this ledger’s gross fees are rejected as an input error.

Korean miscellaneous-income rules for 2026

Income Tax Act Article 21(1)8 covers temporary lending fees for goods, including securities.
Taxable income and allowable expenses follow Article 21(3) and Article 37.
Article 87 of the Enforcement Decree does not include item 8 in its standard 60% expense list; item 8-2 and temporary personal-service income must not be confused with securities lending.

Article 129(1)6(d) provides the general 20% national withholding rate for other miscellaneous income.
Local Tax Act Article 103-13 applies local income tax equal to 10% of that national tax, producing a general reference total of 22%.
The calculator uses actual statement withholding; check small-amount treatment, cumulative settlement and prior-period adjustments separately.

The optional settlement assumption

Your actual comprehensive tax depends on employment, business and other income, deductions and other circumstances.
The entered rate is a comparison assumption, not a bracket or tax rate determined by this calculator.
A negative difference does not establish a refund entitlement: check withholding receipts and filing records.
Net after actual withholding can also be negative when statements include prior-period adjustments.

Worked synthetic example

Gross fees are KRW 70,000.
Subtract actual withholding of KRW 15,400 and cash costs of KRW 1,000 for net fees of KRW 53,600.
With zero allowable expenses and an assumed 33% incremental rate including local tax, assumed tax is KRW 23,100, scenario net is KRW 45,900 and the hypothetical additional payment difference is KRW 7,700.
Other taxable miscellaneous income of KRW 2,930,000 brings the annual total to exactly KRW 3,000,000.

A gross dividend substitute of KRW 100,000 less related tax of KRW 15,400 produces a separate net of KRW 84,600.
It is not added to lending fees or taxable miscellaneous income.
All values, rates and confirmation checks in this example are synthetic, not market quotations or a particular broker’s actual contract.

Counting backward before a rights date

Under Commercial Act Article 354, verify the company’s applicable record date for each right, such as voting or dividends.
The calculator does not assume year-end, and broker recall terms may differ by company, market, security and right.
Counting is available only after confirmation of the latest required days, inclusion convention, calendar and cutoff.

For a synthetic rights date of 2026-11-13 and three business days including that date, the weekend-only target is 2026-11-11.
Entering 2026-11-12 as an additional closure moves the target to 2026-11-10; excluding the rights date produces 2026-11-09.
The closure and three-day period are illustrative and must not be treated as an actual exchange holiday or universal contract.

A closed rights date or planned request date is withheld rather than shifted automatically.
Counting beyond verified calendar coverage, or missing cutoff confirmation, also withholds the target.
This prevents a weekend-only approximation from implying that an unverified holiday is a valid processing day.

Steps and next actions

1. Split statement periods by valuation and your payable annual rate, then enter actual counted days and annual basis.
   Up to 60 rows are supported, including single-day rows.
   
2. Separate actual withholding, cash costs, allowable expenses and other same-year taxable miscellaneous income.
   Keep dividend substitutes and their related tax separate.
   
3. If useful, enable the settlement comparison and enter an assumed incremental rate including local tax.
   Do not treat the scenario as actual filing tax.
   
4. Enter the verified broker terms, company rights date, calendar coverage and additional closures.
   Review every confirmation before calculating net fees and recall preparation.
   
5. Save the TXT worksheet, reconcile payments and ask the broker about continued lending, security restrictions or recall.
   After submitting a recall, verify actual account delivery and eligibility for the specific right.
   

Practical situations and limitations

Dividend substitutes may receive different tax-credit treatment from ordinary dividends.
The official Meritz Securities explanation separately addresses exclusion from dividend gross-up and dividend tax credits and the process for recovering rights; verify your payment’s actual classification.
This worksheet does not forecast lending demand, short-selling strategies or investment returns, and excludes foreign securities, bonds, business lending and corporate tax.
Lending fees do not offset or protect against changes in the share price.

Frequently asked questions