--- title: "Korea Company Setup: Step-by-Step Guide for Foreign Investors" description: Learn about Korea company setup options for foreign businesses. Explore local corporations, foreign direct investment companies, branch offices, and liaison offices. Pearson & Partners Korea provides expert assistance in registering your business with comprehensive legal support. image: https://blog.pearsonp.com/hubfs/Learn%20how%20to%20set%20up%20a%20business%20in%20South%20Korea%20with%20our%20detailed%20guide.%20Discover%20essential%20steps%20including%20choosing%20a%20business%20structure%2c%20registering%20a%20company%20name%2c%20and%20complying%20with%20new%20forex%20reforms.-3.jpg --- [![Pearson & Partners Logo](https://blog.pearsonp.com/hs-fs/hubfs/rsz_%EB%A1%9C%EA%B3%A0%ED%88%AC%EB%AA%85%20(8).png?width=1656&height=121&name=rsz_%EB%A1%9C%EA%B3%A0%ED%88%AC%EB%AA%85%20(8).png "Pearson & Partners Logo")](https://pearsonkorea.com/) Open main menu Close main menu [Back to Blog](https://blog.pearsonp.com) # Korea Company Setup: Step-by-Step Guide for Foreign Investors ![Zion Shim](https://app.hubspot.com/settings/avatar/25e0b587728caf162f5c897daa2a7220) [Zion Shim](https://blog.pearsonp.com/author/zion-shim) [Share this blog post on Twitter](https://twitter.com/intent/tweet?text=I+found+this+interesting+blog+post&url=https://blog.pearsonp.com/korea-company-setup-step-by-step-guide-for-foreign-investors) [Share this blog post on Facebook](http://www.facebook.com/share.php?u=https://blog.pearsonp.com/korea-company-setup-step-by-step-guide-for-foreign-investors) [Share this blog post on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.pearsonp.com/korea-company-setup-step-by-step-guide-for-foreign-investors) ![](https://blog.pearsonp.com/hubfs/Learn%20how%20to%20set%20up%20a%20business%20in%20South%20Korea%20with%20our%20detailed%20guide.%20Discover%20essential%20steps%20including%20choosing%20a%20business%20structure%2c%20registering%20a%20company%20name%2c%20and%20complying%20with%20new%20forex%20reforms.-3.jpg) Virtually anyone, whether an individual or a foreign entity, can establish a business or incorporate a company in South Korea. The choice of business entity depends on the nature of operations and compliance with relevant legal frameworks and regulations. Certified Korean legal professionals oversee the process of starting, registering, and incorporating businesses in South Korea to ensure high-quality service. ### **1. Local Corporation** This option is available to both Korean-owned and foreign-owned companies and is the most common form of incorporation in South Korea. It is open to foreign nationals as well as Korean citizens, with no minimum capital requirement, unlike Foreign Direct Investment Companies (described below). A domestic Korean company can be established under several business structures: **Joint Stock Company (주식회사)** A Joint Stock Company (Chusik Hoesa) is the preferred structure for foreign investors looking to set up subsidiaries in South Korea. It is the only entity in South Korea allowed to issue shares publicly. Shareholders’ liability is limited to their initial investment, and shares can be transferred freely with board approval. The company is required to hold annual general meetings of shareholders, and a statutory auditor must oversee management and finances. **Limited Liability Company (유한회사)** A Limited Liability Company (Yuhan Hoesa) is another common business structure in South Korea, allowing up to 50 shareholders. Shareholders are not personally liable for company debts beyond their capital contributions. Establishing a Limited Liability Company in South Korea requires minimal prerequisites, including at least one director and one shareholder of any nationality, no minimum paid-up capital, and a registered office address. ### **2. Foreign Direct Investment Company** Foreign individuals and entities can establish a local corporation as a Foreign Direct Investment Company (FDI). This option applies to various business types mentioned above. A minimum capital investment of 100 million KRW is required. FDI companies may receive certain legal benefits depending on their activities, in contrast to standard local Korean corporations. ### **3. Branch Office** A Branch Office in South Korea functions as an extension of its foreign headquarters and is legally considered part of the parent company. Branch offices can engage in profit-making activities in Korea and are subject to the same tax laws and rates as domestic Korean companies. ### **4. Liaison Office** Similar to a Branch Office, a Liaison Office is part of a foreign corporation, but its role is limited to non-commercial activities such as market research and promotion for the parent company. Although its scope is restricted, it must be registered with the appropriate tax office. A Liaison Office is often chosen by foreign investors who wish to establish a presence in South Korea and assess the market before launching full-scale business operations. ### **Conclusion** [Pearson & Partners Korea](https://pearsonkorea.com/contactus/?utm_source=google&utm_medium=hubspot&utm_campaign=01&utm_content=241015) specializes in helping establish and incorporate foreign businesses in South Korea. From the initial consultation to the final setup, we provide comprehensive support, assisting you in choosing the most suitable company registration structure. Our services include document preparation, certification, authenticated translations, power of attorney, bank account setup assistance, VAT registration, and visa application support for foreign executives. ![Zion Shim](https://app.hubspot.com/settings/avatar/25e0b587728caf162f5c897daa2a7220) #### Zion Shim With a major in Global Korean Studies from Sogang University, I bring a strong academic foundation to my role at Pearson & Partners. At Pearson & Partners, I have been actively involved in the dynamic world of business expansion, incorporation, and tax accounting strategies. ### Leave a Comment ## Related Articles [![](https://blog.pearsonp.com/hubfs/yonghyun-lee-cJKfMvJGHD0-unsplash%20(1).jpg)](https://blog.pearsonp.com/korea-company-registration-guide-steps-types-and-requirements-for-foreign-investors?hsLang=en) ### [Korea Company Registration Guide: Steps, Types, and Requirements for Foreign Investors](https://blog.pearsonp.com/korea-company-registration-guide-steps-types-and-requirements-for-foreign-investors?hsLang=en) South Korea is a prime destination for foreigners looking to start businesses, thanks to its advanced economy and strategic location between economic giants China and... ![Zion Shim](https://app.hubspot.com/settings/avatar/25e0b587728caf162f5c897daa2a7220) [Zion Shim](https://blog.pearsonp.com/author/zion-shim) [Read More](https://blog.pearsonp.com/korea-company-registration-guide-steps-types-and-requirements-for-foreign-investors?hsLang=en) [![](https://blog.pearsonp.com/hubfs/Explore%20South%20Koreas%20vibrant%20e-commerce%20market%2c%20known%20for%20its%20technological%20advancements%20and%20rapid%20growth.-3.jpg)](https://blog.pearsonp.com/korea-company-incorporation-a-guide-for-foreign-businesses-in-south-korea?hsLang=en) ### [Korea Company Incorporation: A Guide for Foreign Businesses in South Korea](https://blog.pearsonp.com/korea-company-incorporation-a-guide-for-foreign-businesses-in-south-korea?hsLang=en) **For foreign individuals or entities without South Korean residency, there are four main options for establishing and registering a business in the country:** ![Zion Shim](https://app.hubspot.com/settings/avatar/25e0b587728caf162f5c897daa2a7220) [Zion Shim](https://blog.pearsonp.com/author/zion-shim) [Read More](https://blog.pearsonp.com/korea-company-incorporation-a-guide-for-foreign-businesses-in-south-korea?hsLang=en) #### About - [Our Mission](https://pearsonkorea.com/aboutus/ourmission/) - [What We Do](https://pearsonkorea.com/aboutus/whatwedo/) #### Service - [Overview](https://pearsonkorea.com/ourservice/overview/) - [Incorporation](https://pearsonkorea.com/ourservice/incorporation/) - [Korea Visa](https://pearsonkorea.com/ourservice/visa/) - [Tax & Accounting](https://pearsonkorea.com/ourservice/taxaccounting/) - [Recruitment](https://pearsonkorea.com/ourservice/recruitment/) - [Finding Partners](https://pearsonkorea.com/ourservice/partner/) - [Living in Korea](https://pearsonkorea.com/ourservice/livinginkorea/) - [FAQs](https://pearsonkorea.com/ourservice/faqs/) #### Blog - [Insights](https://pearsonkorea.com/insights/) - [Blog](https://blog.pearsonkorea.com/) ### Contact Us Follow us on Facebook Follow us on LinkedIn Follow us on Twitter Follow us on Instagram ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Zion Shim", "url" : "https://blog.pearsonp.com/author/zion-shim" }, "dateModified" : "2024-12-04T08:42:46.113Z", "datePublished" : "2024-10-15T01:57:17.000Z", "headline" : "Korea Company Setup: Step-by-Step Guide for Foreign Investors", "image" : [ "https://blog.pearsonp.com/hubfs/Learn%20how%20to%20set%20up%20a%20business%20in%20South%20Korea%20with%20our%20detailed%20guide.%20Discover%20essential%20steps%20including%20choosing%20a%20business%20structure%2c%20registering%20a%20company%20name%2c%20and%20complying%20with%20new%20forex%20reforms.-3.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.pearsonp.com/korea-company-setup-step-by-step-guide-for-foreign-investors", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.pearsonp.com/hubfs/P&P%20box-1.jpg" }, "name" : "Pearson & Partners Korea" } } ```