Post-Incorporation Compliance in Korea: What Foreign Companies Must Know

Registering your company in South Korea is only the first step in building a successful presence. Once incorporated, businesses must meet ongoing compliance requirements to stay legally active, avoid penalties, and maintain credibility with Korean authorities.

In this article, we outline the key post-incorporation obligations foreign companies should be prepared for in Korea.

1. Business Registration Certificate (사업자등록증) 📄

After incorporation, every company must obtain a Business Registration Certificate from the National Tax Service (NTS) within 20 days.

👉 Why it matters: This certificate is required for issuing tax invoices, hiring staff, and legally conducting business.

2. Tax Compliance and Filings 📊

Korean companies are subject to strict tax rules. Key obligations include:

• Corporate income tax: Progressive rates of 9–24%, plus local surtax (combined top ~26.4%).

• VAT: 10% standard rate on most goods and services.

• Tax filing deadlines:

  • VAT: filed quarterly.

  • Corporate income tax: filed annually, usually within three months of year-end.

👉 Tip: Maintain Korean GAAP-based accounting records to avoid audits.

3. Social Insurance Enrollment 👥

All companies employing staff must register them in Korea’s four mandatory social insurances:

• National Pension Service (NPS)

• National Health Insurance (NHIS)

• Employment Insurance

• Industrial Accident Compensation Insurance

👉 Tip: Non-compliance can lead to fines and back payments.

4. Annual General Meeting (AGM) & Reporting 🏢

• Joint Stock Companies (JSC): Required to hold annual shareholder meetings and file audited financial statements.

• LLCs: Less formal, but still must maintain proper internal records.

👉 Tip: Even if your entity is small, prepare meeting minutes and financial documentation to stay compliant.

5. Labor Law Compliance 📑

South Korea enforces strict labor protections, including:

• Maximum 52-hour work week.

• Severance pay (one month’s wages per year of service after one year).

• Detailed rules on termination and employee protections.

👉 Tip: Consider HR outsourcing or EOR support if you lack in-house expertise.

6. Industry-Specific Licenses 🔑

Depending on your sector, you may need to renew or maintain specific licenses (e.g. F&B, fintech, medical services).

👉 Tip: Always check if industry-specific regulations apply beyond the initial registration.

7. Ongoing Compliance Checklist ✅

• File taxes on time (corporate, VAT, local).

• Renew licenses as required.

• Maintain accounting records under Korean GAAP.

• Hold AGMs (if JSC).

• Keep HR, payroll, and social insurance in compliance.

Final Thoughts: Compliance as the Key to Long-Term Success 🚀

For foreign investors, registering a company in Korea is only the beginning. Long-term success depends on meeting ongoing obligations, from tax filings to labor law compliance.

At Pearson & Partners Korea, we help companies not only register smoothly but also stay compliant year after year. From accounting and HR to annual reporting, our team ensures you remain on solid legal ground.

📞 Ready to expand into Korea with confidence?
Book a free consultation today
and let us guide you through both registration and post-incorporation compliance.

👉 For a complete overview of setup, see our Pillar Guide to Korea Company Registration.

For inquiries about Singapore Business Registration, please click here.

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