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 will be added from the World Bank in the data release (P1).
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 Korea partly consistent Tax 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 Administration National 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.