South Korea is where tradition meets technology — a country where innovation isn’t just a buzzword but a daily reality.
With a hyper-connected digital infrastructure, a thriving startup ecosystem, and strong government support for foreign investment, Korea has become a strategic hub for global entrepreneurs.
If you are considering expansion into Asia, registering a company in Korea could be the exact opportunity your business needs.
Table of contents
Open Table of contents
- Why Start a Business in South Korea?
- Entering a New Market Requires More Than Vision
- Step-by-Step Guide to Company Registration in Korea
- Additional Steps for Foreign-Owned LLCs
- Which Business Entity Is Right for You?
- Before You Begin: Checklist
- Frequently Asked Questions (FAQ)
- Partner with SMA Lawfirm for a Smooth Setup
Why Start a Business in South Korea?
- Advanced economy: GDP exceeding USD 1.6 trillion
- Government support: Incentives for foreign direct investment (FDI) and innovation
- Thriving startup ecosystem: Access to VC funding, accelerators, and global markets
- Strategic location: Gateway to China, Japan, and Southeast Asia
South Korea offers an ideal launchpad — but successful entry requires more than ambition.
Entering a New Market Requires More Than Vision
To ensure a smooth expansion, you need:
- The right legal entity
- Compliance with Korean corporate, tax, and labor laws
- A clear, actionable market entry strategy
Step-by-Step Guide to Company Registration in Korea
1. Choose the Right Legal Entity 🏢
Your choice affects taxes, liability, governance, and funding.
- LLC (Yuhan Hoesa): Flexible, limited liability, faster to set up — ideal for SMEs and foreign startups.
- JSC (Chusik Hoesa): Shareholder-driven, suitable for larger companies or those seeking outside investment.
- Branch / Representative Office: Allows a foreign company to establish a presence (but a representative office cannot generate revenue).
2. Reserve and Register Your Business Name 📝
- Must comply with Korean corporate naming rules.
- Should be available and easily usable in both English and Korean.
- Registered with the Corporate Registry.
3. Draft Articles of Incorporation 📑
- Define company purpose, capital, shareholders, and governance.
- Notarization is required before submission.
4. Submit Incorporation Documents ⚖️
Typical package includes:
- Articles of Incorporation
- Proof of capital deposit
- ID/passports of directors/shareholders
- Court registration fees
5. Obtain Necessary Business Licenses 🔑
Depending on industry:
- F&B: Sanitation permits
- Technology / Finance: Sector-specific approvals
6. Register for Tax & Social Insurance 📊
- Register with the National Tax Service (NTS) for corporate tax and VAT.
- Enroll employees in:
- National Pension
- Health Insurance
- Employment Insurance
- Industrial Accident Insurance
7. Maintain Ongoing Compliance ✅
- File annual corporate income tax returns.
- Hold shareholder meetings (for JSCs).
- Renew licenses as required.
- Maintain Korean GAAP-compliant accounting records.
Additional Steps for Foreign-Owned LLCs
Foreign investors must:
- Notify a Foreign Exchange Bank (FEB) of the investment.
- Deposit capital in a temporary Korean bank account.
- Complete FDI registration within 30 days.
- Open a permanent corporate bank account after incorporation.
Which Business Entity Is Right for You?
| Entity Type | Key Features | Best For |
|---|---|---|
| LLC (Yuhan Hoesa) | Limited liability, flexible governance | SMEs, startups, early-stage investors |
| JSC (Chusik Hoesa) | Strong governance, easy equity raise | Large enterprises, IPO preparation |
| Branch Office | Linked to foreign parent company | Companies expanding operations |
| Representative Office | Market research only, no revenue allowed | Non-revenue exploratory presence |
Before You Begin: Checklist
- ✅ Capital investment (varies by industry)
- ✅ Business plan with market strategy
- ✅ Legal documents (passports, IDs, POA if applicable)
- ✅ Registered address (physical or approved virtual office)
Frequently Asked Questions (FAQ)
1. Can a foreigner start a company in Korea?
Yes. Foreigners can own 100% of a Korean entity in most industries (except restricted sectors like defense or broadcasting).
2. How long does company registration take?
Typically 2–4 weeks depending on documentation readiness and licensing needs.
3. Can I register without being physically in Korea?
Yes, incorporation can be completed through Power of Attorney (POA) without your physical presence.
4. Do I need a Korean partner?
No, a local partner is not required except for restricted industries.
Partner with SMA Lawfirm for a Smooth Setup
At SMA Lawfirm, we guide foreign entrepreneurs through Korea company formation from start to finish — entity selection, FDI registration, tax setup, and compliance.
Our bilingual legal team ensures your expansion is fast, compliant, and positioned for long-term growth.
📩 Contact us today to schedule your consultation and start building your business in Korea with confidence.