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  • ① How Foreigners Advance Into Korea

    There are three ways by which foreigners (foreign corporations) can enter Korea for business purposes: establishing a local corporation, a local branch, or a liaison office.

    ② Company Under the Foreign Investment Promotion Act

    The establishment of a local corporation in Korea by a foreigner (individual or corporation) is regulated by the Foreign Investment Promotion Act and the Commercial Act. For a local corporation to be recognized as a foreign-invested company under the Foreign Investment Promotion Act, a foreigner must invest not less than 100 million won in the local corporation and acquire not less than 10 percent of the company’s stocks with voting rights. A corporation established by a foreigner with an investment of not less than 100 million won is also recognized as a foreign investment under the Foreign Investment Promotion Act. (In the case of foreigners who have established a private business, issuance of the D-8 corporate investment visa is not permitted. However, a D-9 trade management visa can be issued for foreigners investing 300 million won or more.) 。

    ③a Non-Resident (Foreign Company) Under the Foreign Exchange Transactions Act

    A domestic branch of a foreign company can be classified into a branch and a liaison office depending on whether the entity engages in sales activities. A branch that operates a business that generates profit in Korea is not considered foreign direct investment because it is a branch of a foreign company, not a domestic company. A liaison office does not carry out businesses that generate profit in Korea, but instead undertakes non-sales functions such as market research and R&D. Unlike a branch, a liaison office does not need to undergo registration, and is granted an identification number equivalent to the business registration number at a jurisdictional tax office in Korea.

    ④ Comparison of a Foreign-Invested Company and a Domestic Branch


  • Hong Kong Office

    : Unit 706, 7/F, South Seas Centre Tower 2, No.75 Mody Road, Tsim Sha Tsui East, Hong Kong / Tel:(852)3913-9500 / Fax:(852)2170-1919 / Webmaster:tnccsteam@korchina.com

  • Singapore Office

    : 3 Shenton Way #16-08 Shenton House Singapore 068805 / Tel: (65)6542-2309 / Fax : (65)3125-7338 / Privacy - 私隱政策

  • Korea Office

    : 9F, Pung Sung Bldg, 21, World Cup buk-ro, Mapo-gu, Seoul, Korea 04001 / Tel : (82)70-7436-5844 / Fax : (82)2-713-0056

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