Pearson Korea Blog

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.

With its dynamic economy and cutting-edge technology, South Korea presents a favorable environment for entrepreneurs looking to set up their businesses. For those considering Korea company setup, understanding the consumer profile, purchasing power, and behavior is key to creating effective market entry strategies. Additionally, having a strong grasp of business operations, company types, costs, taxes, and labor conditions is essential. This guide covers the crucial elements of business registration and operations in South Korea.

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.

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.

In the dynamic landscape of global finance, South Korea's fintech sector has emerged as a key destination for foreign direct investment (FDI). With its rapid technological advancements and strong economy, the country is now at the forefront of fintech innovation, driven by pioneering strategies and supportive policies. This article delves into the rise of South Korea's fintech industry and its increasing impact on FDI, offering a closer look at its development and future prospects.

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.