Pearson Korea Blog

In today's interconnected global landscape, South Korea stands out as a leader in technological innovation and economic growth, making it an attractive destination for international companies seeking expansion. Establishing a subsidiary here offers access to a large, dynamic consumer base and serves as a gateway to a hub of innovation. However, to succeed, careful planning and a solid understanding of the local business environment are essential. This article outlines the crucial steps for starting a business in South Korea, ensuring a seamless and compliant process in one of Asia's most thriving economies.

If you're an international tech entrepreneur with innovative ideas and aspirations to launch a startup in South Korea, the OASIS (Overall Assistance for Startup Immigration System) program could be your gateway to success. Operated by the Global Startup Immigration Center and guided by the Ministers of Justice and Small and Medium Venture Businesses, OASIS offers extensive support to help foreign startups flourish in Korea, including the chance to secure the startup visa (D-8-4).

South Korea is a major business hub in Asia, drawing numerous foreign investors eager to engage with its dynamic economy. While launching a business in the country can be profitable, the registration process can seem complex, particularly for those unfamiliar with the legal and regulatory landscape. To ensure a smooth journey, it's important to follow essential steps that will help you comply with local regulations and run your business efficiently. This guide outlines the key steps foreign investors need to take to establish a company in South Korea, from selecting the right business structure to obtaining licenses and setting up a business bank account.

South Korea is preparing to introduce major reforms to its foreign exchange market, marking the most significant changes since the financial crisis of 1998. A key update includes extending trading hours until 2 AM to align with the close of the London market, with the long-term aim of enabling 24-hour trading. Additionally, foreign financial institutions will be allowed direct access to Seoul’s forex market, reducing reliance on non-deliverable forward (NDF) markets. Prominent banks such as KB Kookmin, Shinhan, Hana, and Woori are bolstering their teams to register overseas branches as Recognized Foreign Institutions (RFIs), thereby enhancing their global operations in the South Korean won market.

If you’re a foreign individual considering setting up a business in Korea, this article provides essential information. South Korea, particularly Seoul, has become a prime global business destination, offering numerous growth opportunities. Attracted by this potential, many foreigners bring innovative business concepts and are eager to contribute to the Korean market. However, a solid business plan is not enough to start a company in Korea. Foreigners must familiarize themselves with the nuances of company formation and business operations within the country. The following sections will explore four types of companies that foreign entrepreneurs can establish in South Korea.

Since the market liberalization efforts in the 1990s, the country’s thriving private sector has made remarkable progress. Foreign portfolio investments accounted for over 37% of the Korea Composite Stock Price Index (KOSPI)'s total market capitalization as of February 2022, reflecting South Korea’s commitment to fostering innovation, advancing industries, and creating a business-friendly environment. These factors make South Korea an ideal destination for foreigners looking to establish and grow their businesses.

On April 3, 2024, the Ministry of Trade, Industry, and Energy, together with KOTRA’s Foreign Investment Ombudsman, convened a meeting with the CEOs of foreign-invested companies and representatives from foreign chambers of commerce in Korea. The purpose was to explore new initiatives aimed at improving the investment environment and boosting Foreign Direct Investment (FDI) in Korea. The government has set an ambitious goal of attracting $35 billion in foreign investment for 2024 and is determined to implement strategies that make it easier for foreign companies to enter the Korean market.

South Korea is on the verge of implementing significant reforms to its foreign exchange market, marking the most substantial changes since the 1998 financial crisis. One of the primary updates is the extension of trading hours until 2 AM to coincide with the closing of the London market, with a long-term goal of offering 24-hour trading. Additionally, authorized foreign financial institutions will be granted direct access to Seoul's forex market, reducing the dependency on non-deliverable forward (NDF) markets. Leading banks such as KB Kookmin, Shinhan, Hana, and Woori are strengthening their teams to register overseas branches as Recognized Foreign Institutions (RFIs), boosting their global operations in the South Korean won market.

Starting a business in South Korea involves thorough planning and understanding of taxation, employment, and regulatory requirements. From determining corporate tax rates to selecting suitable visas for foreign employees, navigating these processes is essential for a smooth business setup. Despite these considerations, South Korea’s strong economy and expanding market make it a prime destination for foreign investors.