Starting a business in Korea as a foreign entrepreneur can be an exciting opportunity, but navigating the legal, financial, and administrative processes can be complex. Korea has a thriving startup ecosystem, government incentives, and a strong economy, making it an attractive destination for foreign investors and entrepreneurs.
In this guide, we’ll walk you through the key steps to legally establish and operate a business in Korea, covering visa requirements, business registration, taxation, and funding options.
1. Choose the Right Visa for Business in Korea
Before setting up a company, you need the appropriate visa that allows you to legally operate a business in Korea.
✅ Most Common Business Visas for Foreign Entrepreneurs:
1️⃣ D-8 Investment Visa (Foreign Investor Visa)
• For those who invest at least ₩100 million KRW (~$75,000 USD) in a Korean company
• Requires a business registration certificate and investment documentation
2️⃣ D-9 Trade Visa (International Trading Business)
• For foreign traders engaging in import/export businesses
• Requires a trade business registration certificate
3️⃣ F-2-7 or F-2-99 (Long-Term Residency Visas)
• Based on point-based system (age, education, income, Korean proficiency)
• Allows greater flexibility in starting and running a business
4️⃣ F-5 Permanent Residency Visa
• Provides full business freedom like Korean nationals
• Requires long-term residency and financial stability
💡 Pro Tip:
If you’re planning to launch a startup, consider applying for the OASIS Startup Visa Program, which helps foreign entrepreneurs set up a business in Korea with government support.
2. Select a Business Structure & Register Your Company
Korea offers several business entity types, and choosing the right one depends on your business size, ownership, and tax preferences.
✅ Types of Business Entities in Korea:
1️⃣ Private Business (Sole Proprietorship, 개인사업자)
• Best for small businesses or freelancers
• Requires simpler registration and lower taxes but personal liability is high
2️⃣ Limited Liability Company (LLC, 유한회사)
• Best for startups and small businesses
• Provides limited liability but fewer investors compared to a corporation
3️⃣ Corporation (주식회사, Jusik Hoesa)
• Best for larger businesses or foreign investors
• Allows shareholders & foreign investment
✅ How to Register Your Business in Korea:
🔹 Step 1: Choose a Business Name
• Must be unique and not already registered in Korea
• Can be checked via the Korean Intellectual Property Office (KIPO) website
🔹 Step 2: Get a Business Registration Certificate (사업자등록증)
• Apply at the National Tax Service (NTS) office
• Required documents: Passport, visa, lease agreement, business plan
🔹 Step 3: Open a Korean Bank Account
• You need a corporate bank account for tax & financial transactions
• Some banks require a minimum capital deposit
🔹 Step 4: Register for Taxes & VAT
• If your annual revenue is over ₩30 million KRW (~$22,500 USD), you must register for VAT (Value Added Tax)
🔹 Step 5: Obtain Licenses & Permits (if needed)
• Depending on the industry, you may need additional government permits (e.g., F&B, healthcare, education)
💡 Pro Tip:
To simplify the process, consider using the Invest Korea One-Stop Service, which provides legal and administrative support for foreign entrepreneurs.
3. Understand Korean Taxation & Financial Requirements
Korea has strict tax regulations, and complying with corporate tax, VAT, and employment tax is crucial for your business.
✅ Key Tax Requirements for Businesses in Korea:
✔ Corporate Income Tax (법인세) – 10% to 25% depending on revenue
✔ Value-Added Tax (VAT, 부가세) – 10% on goods & services
✔ Payroll Tax & Social Security Contributions – Employer must pay insurance & pension for employees
✔ Annual Tax Filing – All businesses must report yearly financial statements
💡 Pro Tip:
Hiring a Korean accountant (세무사, tax specialist) can help you navigate complex tax filings and avoid penalties.
4. Business Funding & Government Support for Foreign Entrepreneurs
Korea offers various funding options, startup grants, and government-backed programs for foreign-owned businesses.
✅ How to Secure Funding for Your Business in Korea
🔹 Korea Development Bank (KDB) Loans – Government-backed low-interest business loans
🔹 Korean Startup Support Programs (TIPS, K-Startup Grand Challenge) – Grants for innovative startups
🔹 Venture Capital (VC) & Angel Investors – Many foreign startups raise capital through Seoul Startup Hub
💡 Pro Tip:
Check out K-Startup Go!, an official government platform that connects foreign entrepreneurs with funding opportunities and incubation programs.
5. Hiring Employees & Understanding Korean Labor Laws
If you plan to hire employees in Korea, you must follow labor laws, contracts, and employee benefits regulations.
✅ Key Labor Law Requirements in Korea:
✔ Employment Contracts – Must be written and include salary, working hours, and benefits
✔ Standard Working Hours – 40 hours per week (overtime requires extra pay)
✔ Mandatory Employee Benefits – Includes health insurance, pension, severance pay
✔ Hiring Foreign Employees – Requires work visa sponsorship
💡 Pro Tip:
To find employees, use platforms like JobKorea, Saramin, or LinkedIn Korea.
Final Thoughts – Is Korea a Good Place for Foreign Entrepreneurs?
Starting a business in Korea can be highly rewarding if you understand the legal, tax, and financial requirements. The country offers a strong startup ecosystem, tech-friendly environment, and government support for foreign entrepreneurs.
✅ Checklist for Setting Up a Business in Korea:
✔ Get the right visa (D-8, D-9, or F-series visas)
✔ Choose the best business structure (LLC, Corporation, or Sole Proprietorship)
✔ Register your business, taxes, and corporate bank account
✔ Secure funding & government startup grants
✔ Hire employees and comply with labor laws
If you’re ready to launch your business in Korea, start by consulting with Invest Korea or a local business consultant to streamline the process!