Pearson Korea Blog

South Korea is set to introduce significant reforms to its foreign exchange market, marking the biggest changes since the 1998 financial crisis. Key updates include extending trading hours until 2 AM to overlap with the close of the London market, with plans to eventually enable 24-hour trading. Approved foreign financial institutions will soon have direct access to Seoul’s forex market, reducing dependence 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 foreign financial institutions (RFIs), broadening their influence in the South Korean won market.

Starting a Business in South Korea

South Korea is known for its supportive environment for business, attracting many companies to set up operations. However, establishing a business here involves paying close attention to essential details. For instance, all government-related corporate transactions are conducted in Korean, which often makes it beneficial to have a professional fluent in the language to help navigate the process effectively.

South Korea’s logistics industry is undergoing major transformations, spurred by technological innovations, shifting global trade dynamics, and strategic infrastructure investments. Key indicators point to a sector primed for growth and adaptability to emerging trends. From the revitalization of major ports like Busan and Incheon to the rapidly expanding cold chain market, South Korea presents an appealing landscape for logistics experts and investors. This article delves into the factors shaping Korea's logistics ecosystem and explores both domestic and international opportunities within the sector.

Why Choose South Korea?

South Korea is known for its business-friendly environment, making it a top choice globally for business setup. However, the process requires careful adherence to specific requirements. For instance, all corporate documents and government interactions are conducted in Korean, so either fluency in Korean or support from a local professional is essential for smooth operations.

For foreign individuals or entities without South Korean residency, there are four main options for establishing and registering a business in the country:

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 Japan. Known as one of the Four Asian Tigers, South Korea offers an efficient company registration process, making it ideal for both new and seasoned entrepreneurs. This guide provides a concise overview of the steps and requirements to register a company in South Korea.

Foreign investors entering South Korea’s vibrant market have several setup options, including forming foreign-invested companies or establishing branches and liaison offices. This article provides an overview of these choices and compares Limited Liability Companies (LLCs) and Joint-Stock Companies (JSCs), as well as branches and liaison offices, to help investors make informed decisions aligned with their strategic goals.

Starting a company in South Korea requires a solid understanding of its complex legal landscape, with the choice of business structure being especially impactful. Among various options recognized under the Commercial Code, joint ventures play a prominent role in shaping the country’s commercial sphere. This guide introduces the detailed process of setting up a joint venture in South Korea, covering the necessary steps, key considerations, and vital information. Prospective entrepreneurs are encouraged to understand these nuances, seek legal guidance, and make informed choices throughout the process. From selecting the right company structure to navigating foreign document regulations, this guide is a comprehensive resource for those starting a joint venture in Korea.

On April 3, 2024, Korea’s Ministry of Trade, Industry, and Energy, alongside KOTRA’s Foreign Investment Ombudsman, held a strategic meeting with CEOs of foreign-invested companies and representatives from foreign chambers of commerce in Korea. The aim was to discuss new initiatives to enhance Korea’s investment environment and attract more Foreign Direct Investment (FDI). The government has set a target of $35 billion in foreign investment for 2024 and is committed to implementing policies that simplify market entry for foreign companies.

South Korea is set to implement substantial reforms in its foreign exchange market, representing the most significant updates since the 1998 financial crisis. Notable changes include extending trading hours until 2 AM to align with the close of the London market, with a long-term goal of establishing 24-hour trading. Foreign financial institutions will also gain direct access to Seoul’s forex market, decreasing dependency on non-deliverable forward (NDF) markets. Leading banks, including KB Kookmin, Shinhan, Hana, and Woori, are expanding their teams to register their overseas branches as Recognized Foreign Institutions (RFIs), enhancing their global operations in the South Korean won market.