Business structure in South Korea

Incorporating a foreign business

Representative Office / Liaison Office
Its activity is conducted on behalf of the parent company. It is attributed marketing functions. These offices do not have capacity to contract commercially. The establishment process is simple. The RO is regulated by the Foreign Exchange Transaction Act (FETA).

Branch
Consideration of the permanent establishment depending on the parent company, which takes on all the obligations undertaken by the branch. There is no minimum capital requirement. The establishment procedure is simpler than that of a subsidiary. Same labour and tax obligations.

Private Business

  • Minimum capital of 100,000 USD.
  • Simple procedure.
  • All the decisions and obligations pertain to the owner of the business.
  • Ideal for establishing a business on a smaller scale than a subsidiary.

Public Limited Company

  • Minimum capital of 100,000 USD.
  • At least two partners, with no limitation by nationality.
  • A number of sectors are restricted for foreign investment.

Incorporating a business in South Korea

Any foreign company that wishes to set up in South Korea will be governed by the 2001 legislation, which speeded up procedures and provided an incentive for investment in the country. This system is almost identical to the one used for South Korean companies

It can be incorporated in two weeks and the administrative costs are around 1500 euros.