This country currently has a directory entry or basic profile only; a full handbook is planned.
01Overview
- Region
- East Asia & Oceania
- Capital
- Seoul
- Currency
- KRW
- Languages
- Korean
- ISO code
- KR / KOR
Jurisdictions
- South Korea — National level; special zones and regulated sectors have separate rules
Macro indicators such as GDP and population are not included yet; see official statistics such as the World Bank.
02Market Entry
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Most sectors open under the Foreign Investment Promotion Act
- Applies to
- The Ministry of Trade, Industry and Energy publishes restricted sectors annually
- Jurisdiction
- South Korea
- Source
- MOFCOM
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Stock company (chusik hoesa)
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
Registration authority
Primary authority for company or commercial registration.
Court registry office; foreign investment notified via KOTRA
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Most sectors open under the Foreign Investment Promotion Act
- Applies to
- The Ministry of Trade, Industry and Energy publishes restricted sectors annually
- Jurisdiction
- South Korea
- Source
- MOFCOM
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
Progressive rates up to 24%
- Applies to
- Four brackets of 9%–24% from 2023; a 2025 reform proposed restoring a 25% top rate — check NTS
- Jurisdiction
- South Korea
- Source
- State Taxation Administration
- Cross-check
Tax Guide for Chinese Residents Investing in South Koreapartly consistentTax guide (2024 ed.) gives 9%–24%; a 2025 reform proposed restoring 25% — verify
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
VAT 10%
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- State Taxation Administration
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
20% (plus local income tax)
- Applies to
- 5% or 10% under the China–Korea treaty
- Jurisdiction
- South Korea
- Source
- National Tax Service
Tax authority
Authority responsible for corporate tax registration and filing.
National Tax Service
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- State Taxation AdministrationNational Tax Service
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- South Korea
- Source
- State Taxation Administration (China)State Taxation Administration
05Banking & Payments
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
FX transactions governed by the Foreign Exchange Transactions Act
- Applies to
- Foreign-invested companies file through designated FX banks
- Jurisdiction
- South Korea
- Source
- MOFCOM
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Bank of Korea; Financial Services Commission and Financial Supervisory Service
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Corporate investment (D-8), specialist (E-7) and other visas
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
Korea Immigration Service (Ministry of Justice)
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
Social security contributions
Main employer social security schemes for local and foreign employees.
Four major insurances: national pension, health, employment and industrial accident
- Applies to
- Chinese posted workers may be exempt from national pension and employment insurance under the China–Korea agreement
- Jurisdiction
- South Korea
- Source
- National Pension Service
07Trade & Customs
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
22 FTAs in force with 59 economies, including the China–Korea FTA
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
Customs authority
Authority for import/export clearance and tariffs.
Korea Customs Service
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- Korea Customs Service
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
KOTRA (Invest KOREA)
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Free Economic Zones (FEZ) and free trade zones
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
09Digital & IP
IP office
Authority for trademark and patent filing and registration.
Korean Intellectual Property Office
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Personal Information Protection Act
- Applies to
- Ordinary companies
- Jurisdiction
- South Korea
- Source
- MOFCOM
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- South Korea
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Asia-Pacific, monitored by our sister site Global Risk Monitor.
View Asia-Pacific risk monitor
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
- 1Decide model and jurisdiction
- 2Confirm licences
- 3Prepare documents
- 4Incorporate
- 5Register for tax
- 6Open bank account
- 7Obtain operating licences
- 8Start operations
Generic steps without times or fees; rely on the facts and official sources on this page.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻大韩民国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.