Pearson Korea Blog

South Korea is set to undergo significant reforms in its foreign exchange market, the most extensive since the 1998 financial crisis. These reforms include extending trading hours until 2 AM, aligning with London's market close, and paving the way for 24-hour operations in the future. Notably, overseas financial institutions approved by Korean authorities will gain direct access to Seoul's forex market, reducing reliance on non-deliverable forward (NDF) markets. Major banks like KB Kookmin, Shinhan, Hana, and Woori are expanding their teams to prepare for these changes, aiming to register their overseas branches as foreign financial institutions (RFIs) to bolster their presence in Seoul and enhance global operations denominated in South Korean won.

South Korea, recognized as Asia's business epicenter, holds great appeal for international investors seeking entry into its vibrant economy. While establishing a company in Korea offers lucrative opportunities, navigating the registration process can be daunting for those unfamiliar with its legal framework.

韓国でのビジネス設立を考えると、世界で最も成長著しい経済のひとつに位置付けられ、多くのグローバル投資家の関心を集めています。韓国の先進的なインフラ、熟練した労働力、好条件なビジネス環境は、野心的な起業家にとって豊富な機会を提供しています。

On April 3, 2024, the Ministry of Trade, Industry, and Energy, along with the KOTRA Foreign Investment Ombudsman, organized a meeting with CEOs of foreign-invested companies and representatives of foreign chambers of commerce in Korea. The purpose was to discuss ways to enhance Korea's investment climate and boost foreign direct investment (FDI). The government has set a target of attracting $35 billion in foreign investment for 2024 and has committed to addressing the needs of foreign companies to encourage further investment.

This article provides essential insights for foreigners interested in launching businesses in South Korea, particularly in Seoul, recognized as a prime global business hub with promising growth prospects.

Branch offices in South Korea provide an appealing opportunity for foreign investors aiming to establish a presence in the country's dynamic market. Unlike setting up a local headquarters, companies can exercise their rights under South Korean jurisdiction and conduct profitable operations efficiently. With no restrictions on investment or ownership, and the option to transition to local subsidiaries if needed, Korea offers an ideal environment for growth and success in Asia.

Foreign Direct Investment (FDI) involves establishing a new corporation by a foreign entity or individual, or acquiring shares or equity in domestic enterprises, fostering continuous economic relationships and management participation.

To seize business opportunities in South Korea's dynamic and economically vibrant market, understanding the critical first step of company formation is essential. With its strong economy, technological advancements, and strategic location in Asia, South Korea presents an attractive environment for both domestic and international entrepreneurs.

Registering a company in Korea involves navigating the legal framework and understanding the procedural steps required. From selecting the appropriate business structure to ensuring all documentation is in place, each step is vital for establishing a successful business. This guide provides key considerations for foreign investors looking to register a company in Korea.