South Korea Business Setup Guide: How Foreigners Can Start a Company in Korea
Why South Korea Is an Excellent Place to Launch Your Business
South Korea offers a stable, advanced, and investor-friendly environment, making it a top destination for international entrepreneurs. Its transparent legal system, reliable financial institutions, and strong economic growth provide a solid foundation for long-term ventures. Unlike many emerging markets where political risk is a concern, South Korea delivers predictability and regulatory clarity. With government initiatives supporting innovation and foreign investment, it's an ideal hub for building and scaling your business.
How to Start a Business in South Korea
1. Choose the Right Type of Business Entity
The legal structure you select—whether it’s a corporation, branch office, or liaison office—will impact your taxes, liability, and operations. Pick the one that aligns best with your goals.
2. Pick and Register Your Business Name
Choose a unique name that fits your brand and complies with Korean naming rules. Then, register it with the Corporate Registry.
3. Draft the Articles of Incorporation
This legal document outlines your company’s mission, structure, and shareholder roles. It must be notarized before submission.
4. Submit All Required Documentation
File the full set of incorporation paperwork—including your notarized Articles of Incorporation and business registration form—with the appropriate government office.
5. Obtain Industry-Specific Permits (If Needed)
Some industries require additional licenses or approvals. Check if your business needs these before you begin operations.
6. Register for Taxes and Social Insurance
Register with the National Tax Service (NTS) for tax purposes and sign up with the National Pension Service (NPS) for social insurance and employee coverage.
7. Ensure Ongoing Legal Compliance
Maintain regular compliance by submitting annual reports, holding shareholder meetings, and staying current on taxes.
How to Set Up a Limited Liability Company (LLC) in Korea as a Foreigner
Foreign entrepreneurs can easily establish an LLC in Korea by following these steps:
1. Report Your Investment to a Foreign Exchange Bank (FEB)
Visit a designated FEB branch to declare your investment and provide identification.
2. Transfer the Investment Capital
Deposit your funds into a temporary corporate account. The bank will then issue a confirmation of capital receipt.
3. Register the Company
Submit your registration application, including information on shareholders, directors, and auditors, to the local court.
4. Complete Corporate Tax Registration
Register your company with the tax office to fulfill your tax obligations.
5. Open a Permanent Business Bank Account
Once your company is officially registered, transfer the funds to your new corporate bank account.
6. File for Foreign-Invested Company Status
Submit your Foreign Direct Investment (FDI) application within 30 days of capital deposit to get officially recognized as a foreign-invested entity.
Wrapping Up
Setting up a business in South Korea is a clear and manageable process with the right support. From high-tech infrastructure to global trade access, Korea offers a strong launchpad for international businesses.
Pearson & Partners Korea provides full-service support—from entity setup to regulatory compliance and local market strategy.
👉 Contact us to confidently start your business journey in Korea.