🌐 Language / 語言 / 言語 / Idioma: English 中文 日本語 Español 📋 Korean Law Insight | Korean Legal System By Attorney NOH UJIN | HANBYOL LAW LLC, Seoul Public Notary (공증) System in Korea: A Complete Legal Guide to Document Authentication for Foreign Individuals and Businesses Korea's notarization system — operating under the Notary Public Act (공증인법) and the Civil Procedure Code's provisions on notarial deeds — differs significantly from common-law notary systems familiar to many foreign businesspeople and individuals. Understanding how Korean public notaries (공증인) function is essential for anyone executing powers of attorney, loan agreements, corporate resolutions, or other documents intended for use in Korea or abroad. 1. What Is a Korean Public Notary, and How Does It Differ from the Western Notary? In common-law jurisdictions (US, UK, etc.), a "notary public" is typically a low-level official who verifies identity and witnesses signatures. I...
Get link
Facebook
X
Pinterest
Email
Other Apps
Starting a Business in Korea: Legal Steps Every Foreign Investor Must Know
Get link
Facebook
X
Pinterest
Email
Other Apps
-
🌐 Language / 語言 / 言語 / Idioma:
📋 Korean Law Insight | Company Formation & Foreign Investment
By Attorney NOH UJIN | HANBYOL LAW LLC, Seoul
Starting a Business in Korea: Legal Steps Every Foreign Investor Must Know
South Korea ranks among Asia's most dynamic business environments — with a world-class logistics infrastructure, a tech-savvy consumer base, and free trade agreements covering over 70% of global GDP. For foreign investors, establishing a legal presence in Korea opens doors to one of the world's 10 largest economies. This guide walks you through every legal step required to start and operate a business in Korea as a foreign national or foreign company.
1. Business Structure Options for Foreign Investors
Structure
Korean Name
Min. Capital
Best For
Stock Corporation
주식회사 (Jusik Hoesa)
No minimum*
Larger operations, FDI
Limited Liability Company
유한회사 (Yuhan Hoesa)
No minimum*
SMEs, JVs
Limited Partnership
합자회사
No minimum
Special partnerships
Branch Office
지점
None
Foreign company extension
Liaison Office
연락사무소
None
Market research only (no revenue)
*Practical minimum recommended: KRW 100 million for foreign investment registration benefits
2. Foreign Direct Investment (FDI) Registration
Under the Foreign Investment Promotion Act (외국인투자 촉진법), foreign investors who invest KRW 100 million or more receive Foreign Invested Company (외국인투자기업) status, which entitles them to:
Tax incentives (corporate tax exemptions for up to 7 years in certain zones)
Reduced rent in Foreign Investment Zones (외국인투자지역)
Streamlined administrative support through KOTRA's Invest Korea
Protection under bilateral investment treaties
FDI registration is filed with the Korea Exchange Bank or designated foreign exchange bank before or simultaneous with company incorporation.
3. Step-by-Step Company Incorporation
Prepare Articles of Incorporation (정관): Define company name, purpose, registered address, capital structure, and directors. Must be notarized.
Open a Capital Deposit Account (자본금 납입 계좌): Deposit the initial capital in a Korean bank and obtain a balance certificate.
Register with the Court Registry (법인등기): File incorporation documents with the local District Court Registry. Takes 3–5 business days.
Obtain Business Registration (사업자등록): File with the National Tax Service (국세청) within 20 days of incorporation. Obtain a Business Registration Certificate.
Register for FDI (외국인투자 신고): File with a designated foreign exchange bank if investment is KRW 100 million or more.
Open a Corporate Bank Account: Required for all business transactions.
Register for VAT (부가가치세): If annual revenue is expected to exceed KRW 48 million.
Register Employees for Social Insurance: National Health Insurance, National Pension, Employment Insurance, Workers' Compensation.
4. Key Legal Requirements and Compliance
Director Requirements
A Korean stock corporation (주식회사) requires at least 1 director (3 if registered on the stock exchange).
At least one representative director (대표이사) must have a Korean address for service of process.
Foreign nationals can serve as directors and representative directors.
Corporate Taxation
Taxable Income
Corporate Tax Rate
Up to KRW 200 million
9%
KRW 200M – 20 billion
19%
KRW 20B – 300 billion
21%
Over KRW 300 billion
24%
A 10% local surtax applies to the corporate tax amount.
Restricted Industries
Certain industries are restricted or require special approval for foreign investors under the Foreign Investment Promotion Act Schedule:
Broadcasting and media (partial restrictions)
Telecommunications (up to 49% foreign ownership for certain services)
Defense and nuclear energy (prohibited)
Certain financial services (licensing required)
5. Visa Options for Foreign Business Owners
Visa Type
Requirement
Duration
D-8 (Corporate Investment)
KRW 100M+ invested in Korean corporation
Up to 3 years, renewable
D-9 (Trade)
Trade volume or business activity proof
Up to 2 years
F-2 (Resident)
Various qualifying criteria
Up to 3 years
F-5 (Permanent Resident)
5 years residence + investment criteria
Permanent
6. Special Economic Zones and Incentives
Korea offers significant tax and regulatory benefits in designated zones:
Free Economic Zones (FEZ, 경제자유구역): Incheon, Busan-Jinhae, Gwangyang Bay, Yellow Sea, Daegu-Gyeongbuk, East Sea, Saemangeum. Offer corporate tax exemptions, relaxed regulations, and English-language services.
Foreign Investment Zones (외국인투자지역): Custom-designated areas with tailored incentives for specific large investments.
Industrial Complexes: Reduced factory land costs for manufacturing investors.
Q1: Can a foreigner be the sole owner of a Korean company?
Yes. Foreign nationals can own 100% of a Korean corporation with no requirement for a Korean partner, except in restricted industries.
Q2: How long does it take to incorporate a company in Korea?
The full process — from notarizing articles of incorporation to obtaining a business registration certificate — typically takes 2 to 4 weeks. Court registration alone takes 3–5 business days.
Q3: Is a Korean address required?
Yes. The company must have a registered Korean address. The representative director must also have a Korean address for official correspondence. Virtual office services are widely available and accepted.
Q4: What are the annual compliance requirements?
Korean corporations must file: annual corporate tax returns (by March 31), VAT returns (semi-annually), financial statements with the court registry, and hold at least one annual shareholder meeting.
Q5: Can I repatriate profits from my Korean company?
Yes. After paying Korean corporate tax and withholding tax on dividends (typically 20%, reduced under tax treaties), profits can be freely repatriated under the Foreign Exchange Transactions Act.
Q6: Do I need a Korean lawyer to incorporate?
Not legally required, but strongly recommended. A Korean attorney can ensure correct document preparation, advise on optimal corporate structure, and handle court registration more efficiently.
Q7: What is the difference between a branch office and a subsidiary?
A branch office is an extension of the foreign parent company and is liable for all branch debts. A subsidiary (Korean corporation) is a separate legal entity, limiting liability to the Korean company's assets. Subsidiaries also qualify for FDI registration benefits not available to branch offices.
Need Legal Assistance? HANBYOL LAW LLC provides expert Korean corporate law counsel for foreign investors establishing businesses in Korea. 📧 ujin95@hanbl.co.kr | 🌐 www.hanbl.co.kr Initial consultations are complimentary.
📋 Korean Law Insight | Constitución de Empresas e Inversión Extranjera
Por el Abogado NOH UJIN | HANBYOL LAW LLC, Seúl
Cómo Iniciar un Negocio en Corea: Pasos Legales que Todo Inversor Extranjero Debe Conocer
Corea del Sur se encuentra entre los entornos de negocios más dinámicos de Asia, con una infraestructura logística de clase mundial, una base de consumidores tecnológicamente avanzada y tratados de libre comercio que cubren más del 70% del PIB mundial. Esta guía explica todos los pasos legales para establecer y operar un negocio en Corea como extranjero.
1. Opciones de Estructura Empresarial
Estructura
Nombre Coreano
Capital Mínimo
Mejor Para
Sociedad Anónima
주식회사
Sin mínimo legal*
Operaciones grandes, IED
Sociedad de Responsabilidad Limitada
유한회사
Sin mínimo legal*
PYMES, JV
Sucursal
지점
Ninguno
Extensión de empresa extranjera
Oficina de Enlace
연락사무소
Ninguno
Solo investigación de mercado
*Mínimo práctico recomendado: 100 millones de wones para beneficios de registro IED
2. Registro de Inversión Extranjera Directa (IED)
Bajo la Ley de Promoción de la Inversión Extranjera, los inversores que aporten 100 millones de wones o más obtienen el estatus de Empresa de Inversión Extranjera, con beneficios fiscales (hasta 7 años de exención de impuesto corporativo en ciertas zonas), alquiler reducido en Zonas de Inversión Extranjera, apoyo de KOTRA y protección bajo tratados bilaterales de inversión.
3. Proceso de Constitución Paso a Paso
Preparar y notarizar los estatutos sociales
Abrir cuenta bancaria para depósito de capital y obtener certificado de saldo
Registrar la sociedad en el Registro del Juzgado (3–5 días hábiles)
Obtener el certificado de registro empresarial del Servicio Nacional de Impuestos (20 días)
Si la inversión supera 100 millones de wones, registrar la IED en un banco de divisas designado
Abrir cuenta bancaria corporativa
Registrarse para el IVA si se prevé facturación superior a 48 millones de wones anuales
Registrar a los empleados en los seguros sociales
4. Impuesto Corporativo
Renta Imponible
Tasa
Hasta 200 millones de wones
9%
200M – 20.000M de wones
19%
20.000M – 300.000M de wones
21%
Más de 300.000M de wones
24%
Se aplica un recargo local del 10% sobre el impuesto corporativo.
5. Opciones de Visado para Empresarios Extranjeros
Q1: ¿Puede un extranjero ser el único propietario de una empresa coreana?
Sí. Los extranjeros pueden poseer el 100% de una sociedad coreana sin necesidad de socio coreano, excepto en industrias restringidas.
Q2: ¿Cuánto tiempo tarda la constitución?
El proceso completo suele tardar de 2 a 4 semanas. El registro en el tribunal tarda 3–5 días hábiles.
Q3: ¿Se necesita una dirección coreana?
Sí. La empresa debe tener domicilio social en Corea. Los servicios de oficina virtual son ampliamente aceptados.
Q4: ¿Cuáles son los requisitos anuales de cumplimiento?
Declaración anual del impuesto corporativo (antes del 31 de marzo), declaraciones de IVA (semestrales), estados financieros en el registro y al menos una junta general anual de accionistas.
Q5: ¿Puedo repatriar los beneficios?
Sí. Tras pagar el impuesto corporativo coreano y la retención sobre dividendos (normalmente 20%), los beneficios pueden repatriarse libremente bajo la Ley de Transacciones de Divisas.
Q6: ¿Necesito un abogado coreano para constituir la empresa?
No es obligatorio legalmente, pero se recomienda encarecidamente para garantizar la correcta preparación de documentos y optimizar la estructura societaria.
Q7: ¿Cuál es la diferencia entre sucursal y filial?
Una sucursal es una extensión de la empresa matriz y la responsabiliza por todas las deudas. Una filial (sociedad coreana) es una entidad jurídica independiente que limita la responsabilidad a los activos de la empresa coreana, y además puede acceder a beneficios de IED no disponibles para sucursales.
🌐 Language / 語言 / 言語 / Idioma: English 中文 日本語 Español 📋 Korean Law Insight | Transportation Law By Attorney NOH UJIN | HANBYOL LAW LLC, Seoul Korea's passenger transport sector — taxis, car-sharing platforms, and ride-hailing-adjacent services — operates under one of the most tightly regulated mobility frameworks in Asia. Foreign mobility companies, investors, and platform operators considering entry into the Korean market must navigate the Passenger Transport Service Act (여객자동차 운수사업법), licensing quotas, and a legal environment shaped by years of conflict between incumbent taxi operators and new mobility platforms. This guide explains the legal landscape for taxi and car-sharing regulation in Korea. 1. The Passenger Transport Service Act: Licensing Structure All passenger transport businesses in Korea — including taxis, limousine services, and chartered vehicles — require a license under the Passenger Transport Service Act, issued by munici...
How Foreign Creditors Can Recover Debts in South Korea: A Step-by-Step Legal Guide How Foreign Creditors Can Recover Debts in South Korea: A Step-by-Step Legal Guide By Attorney NOH UJIN | HANBYOL LAW LLC, Seoul Labels: Debt Recovery • Cross-Border Litigation • Korean Legal System EN 中文 日本語 Español South Korea's sophisticated legal infrastructure makes it one of the more creditor-friendly jurisdictions in Asia — if you know how to navigate it. For foreign businesses owed money by Korean debtors, understanding the step-by-step legal process is essential to protecting your financial interests. This guide walks you through the primary pathways available under Korean law. 1. Understanding Your Legal Foundations Debt recovery in Korea is governed primarily by two statutes: the Civil Procedure Act (민사소송법) for initiating and conducting litigation, and the Civil E...
Commercial Arbitration in South Korea: What Foreign Businesses Must Know Commercial Arbitration in South Korea: What Foreign Businesses Must Know By Attorney NOH UJIN | HANBYOL LAW LLC, Seoul Labels: Cross-Border Litigation • Business Law • Korean Legal System EN 中文 日本語 Español South Korea has firmly positioned itself as a leading arbitration hub in Northeast Asia. Seoul is home to the Korean Commercial Arbitration Board (대한상사중재원, KCAB), one of the most active arbitral institutions in the region. For foreign businesses entering contracts with Korean counterparties — or seeking to enforce arbitral awards against them — a working knowledge of Korea's arbitration framework is indispensable. 1. The Legal Framework: The Korean Arbitration Act The primary statute governing arbitration in Korea is the Arbitration Act (중재법). Korea substantially reformed its Arbitr...
Comments
Post a Comment