How to register a company in South Korea

South Korea attracts global founders who want access to a mature consumer base, well-developed infrastructure, and a reliable regulatory system. You work with clear rules, advanced digital services, and a predictable environment for growing a registered company. Understanding how to register a company in South Korea helps you plan your entry with confidence and navigate local requirements without confusion.

Why South Korea?

South Korea holds a strong position as a high-income and technology‑driven economy. Its digital readiness and advanced logistics make it appealing for cross‑border e‑commerce and service businesses. You gain access to a stable legal environment, an extensive transport network, and one of the most connected populations globally.

You also operate within a country that maintains free trade agreements with major regions including the United States, the European Union, and ASEAN. This strengthens opportunities for international companies looking to supply Korean customers or use the country as a Northeast Asian hub.

Legal framework and key authorities you’ll deal with

Core laws

When you register a company in Korea, you work within a clear set of statutes:

• Foreign Investment Promotion Act (FIPA) – covers foreign direct investment and the registration of foreign‑invested companies.
• Commercial Act and Commercial Registration Act – define company types such as stock companies and limited companies, and set the rules for commercial registration.
• Foreign Exchange Transaction Act – applies if you plan to open a Korean branch or liaison office of a foreign corporation.
• Value‑Added Tax Act and Enforcement Decree – include rules on business registration deadlines.
• Framework Act on Local Taxes – sets out the basis for local registration tax and local education tax.

Main government bodies

When carrying out company registration in Korea, you typically interact with:

• KOTRA / Invest Korea – handles foreign investment notifications and foreign‑invested company registration.
• Ministry of Justice and District Courts – oversee incorporation and commercial registration through the Supreme Court’s Internet Registry Office.
• National Tax Service (NTS) – issues the Business Registration Certificate and manages tax obligations.
• Immigration authorities (MOJ / HiKorea) – responsible for visas such as D‑8 investor status.
  
  

Each authority plays a specific role in the registration workflow, so understanding their responsibilities saves you time and prevents delays.

Choose the right entry structure as a foreign entrepreneur

Selecting the right entity type shapes your tax exposure, capital needs, decision‑making structure, and local presence in the Korean market. Below is an overview of the most common options.

Under FIPA, an investor usually needs at least 10% voting shares and KRW 100 million (approx. USD 68,000) in capital to qualify for foreign direct investment status. Some sectors require pre‑approval under Korea’s restricted industry list, so checking the negative list early avoids difficulty later.

Pre‑registration checklist for foreign founders

Choose company type and check name availability

Korean law recognises several company types, though stock companies are most common for foreign investors. 

You must also confirm that your planned company name is available through the commercial registry. This is managed within the Supreme Court’s online registry system.

Secure a registered office address

You need a Korean address to complete incorporation and business registration. This can be a leased office, serviced office, or permitted shared space.

Plan capitalisation and shareholding

You decide how much capital to inject and how shares will be distributed. If you want FDI status, you usually meet the KRW 100 million threshold and a minimum 10% shareholding for the foreign investor.

Immigration and visa planning

If you plan to live in Korea and manage the company directly, you usually need a D‑8 investor visa or another relevant status. Recent changes include the Startup Korea Special Visa, designed for qualified foreign founders.

Establishing a local corporation (foreign‑invested stock company)

1. File a foreign investment notification

You or your authorised representative submits an investment notification through:

• KOTRA or Invest Korea
• A domestic designated bank
• A domestic branch of a foreign bank
• A KOTRA office overseas

The submission usually includes a notification form, passport copies or corporate documents, and a power of attorney if needed. Once complete, processing is usually immediate.

2. Remit investment capital to Korea

You transfer your investment capital into Korea through a designated domestic bank. The funds go into a temporary account or a non‑resident account. The bank converts the foreign currency to KRW and issues a securities subscription deposit certificate. This certificate becomes part of the incorporation registration file.

3. Incorporation registration with the court

You proceed with incorporation according to the Commercial Act, which includes:

• Preparing and notarising Articles of Incorporation
• Organising promoters
• Deciding stock issuance
• Paying for shares
• Appointing directors and auditors
• Holding an inaugural meeting
  
  

Then, file your registration with the district court that covers your company’s head office location. Documents include notarised Articles, meeting minutes, director appointment forms, the deposit certificate, lease agreement, and identification documents.

4. Apply for business registration

After incorporation, apply for a Business Registration Certificate with the National Tax Service. You must submit this within 20 days from the start of your business activity. Tax offices typically issue the certificate within a few days.

5. Register as a foreign‑invested company

Within 60 days of paying for your shares, complete foreign‑invested company registration under FIPA. You file through the same organisation that processed your original FDI notification. Once approved, you receive the Foreign‑Invested Company Registration Certificate. This certificate supports dividend remittance and eligibility for certain incentives.

Setting up a branch or liaison office instead of a local corporation

Establishing a domestic branch

If you want a lighter entry path, you can register a branch instead of forming a new company. These steps give the foreign parent an official presence in Korea without forming a separate legal entity.

1. Appoint your local representative
   Designate an individual in Korea who can act on behalf of the foreign parent company. This person handles filings and receives official notices.
2. Complete foreign exchange procedures
   Work with a designated bank to complete reporting under the Foreign Exchange Transaction Act. This confirms that the parent company is establishing a branch in Korea.
3. Prepare branch documents
   Gather corporate documents from the parent company, including the certificate of incorporation, board resolution approving the branch, and proof of identity for the local representative. Apostille or consular authentication is usually required.
4. Register the branch with the district court
   File a commercial registration application with the court that covers the branch’s Korean address. Once accepted, your branch becomes officially recorded in the commercial registry.
5. Obtain business registration from the National Tax Service
   After commercial registration, you apply for business registration at the local tax office. You complete this within 20 days of starting business activities.

Establishing a liaison office

A liaison office carries out non‑commercial functions such as market research. These offices do not register with the court but must obtain a business code number from the tax office. This acts as a form of business registration even though no revenue‑generating activity is allowed.

Costs and fees overview

Total estimated setup cost (excluding capital): KRW 3.38–6.93 million (USD 2,300–4,710)

Post‑registration compliance and ongoing obligations

Running a registered company in Korea includes a few regular tasks.

• Tax compliance: Corporate tax ranges from 10-25%. VAT is 10%. You file annual returns with the NTS.
• Social insurance: You register employees with national pension, health insurance, and unemployment insurance within 14 days of hiring.
• Annual reporting: Stock companies hold shareholder meetings and submit financial statements to the commercial registry.
• Incentives: FDI firms may access grants or tax benefits depending on region and industry.
• Changes or termination: You report changes in investment or liquidation to KOTRA within 30 days.

Practical tips and when to seek professional help

Many foreign founders work with local professionals during incorporation because Korean‑language documents and court processes require precision. Engaging a judicial scrivener for filings or a tax adviser for business registration can save time.

KOTRA and Invest Korea offer advisory services, including guidance on investment procedures and contact points for local authorities. They provide reliable support if you want to move quickly or face unfamiliar requirements.