Foreign Direct Investment Company Setup in Korea: FDI Registration Guide (2026)

Foreign Direct Investment Company Setup in Korea (2026)

Setting up a foreign-invested company (외국인투자기업) in Korea under the Foreign Investment Promotion Act (FIPA) is the primary route for foreign nationals who want to establish a Korean business and obtain the D-8 corporate investment visa. This guide explains the FDI registration framework, the minimum capital requirements, the step-by-step process, and how the company structure connects to your visa status.

What Is FDI Registration?

Under Korean law, a Foreign-Invested Enterprise (FIE) is a Korean legal entity where at least 10% of equity is held by a foreign national or foreign corporation, AND the total invested amount is at least KRW 100 million. Once registered with the government as a foreign-invested enterprise, the company receives an FDI Registration Certificate (외국인투자기업 등록증), which is the key document for:

• Applying for the D-8 Corporate Investment Visa
• Accessing FDI-specific tax incentives (industry and location dependent)
• Streamlined import/export customs treatment in some sectors

This is distinct from simply incorporating a Korean company: a foreign national can set up a standard Korean corporation without FIPA registration, but without the FDI certificate, they cannot apply for the D-8 visa.

FDI Requirements

Restricted Industries

A small number of industries are restricted or require advance approval:

• Defense, broadcasting, certain financial services, gaming casinos
• Agriculture and fisheries (with limits)
• Check the current FDI industry classification table (외국인투자 업종 분류표) before selecting your business line

Step-by-Step Process

Stage 1: Pre-establishment

1. Business planning: Define your Korean business scope, industry code, and company structure
2. FDI notification: File the FDI intent notification (외국인투자 신고) with KOTRA, a foreign exchange bank, or the Invest KOREA portal before remitting capital

Stage 2: Company Formation

3. Open a pre-incorporation bank account: Use a Korean foreign exchange bank to receive the capital remittance
4. Remit capital from overseas: Transfer KRW 100 million+ from the investor's overseas account to the Korean bank account — this must be traceable as a foreign remittance
5. Incorporate the Korean company: File incorporation documents at the district court
6. Obtain business registration: Register with the National Tax Service (사업자등록)

Stage 3: FDI Registration

7. Register as a foreign-invested enterprise: Submit FDI registration application with the court-registered company documents and remittance evidence
8. Receive FDI Certificate: Issued by KOTRA or competent authority — typically within 1–2 weeks

Stage 4: D-8 Visa Application

9. Apply for D-8 visa: Submit FDI Certificate + company documents + business plan to the immigration office

Total timeline: 6–10 weeks from start to D-8 visa approval, assuming no complications with remittance documentation.

Required Documents

For FDI Registration

For D-8 Visa Application (additional)

D-8 Visa Connection

Once FDI registration is complete, the investor can apply for the D-8 Corporate Investment Visa at the immigration office (or at a Korean embassy overseas if the investor is outside Korea).

What the D-8 Visa Allows

• Reside in Korea as the CEO/executive/specialist of the invested company
• Manage, administer, and operate the Korean business
• Initial duration: 1–2 years, renewable indefinitely while business operates
• Path to F-5 Permanent Residency after meeting point thresholds

D-8 Visa Is NOT Needed If…

• You are a Korean national setting up a company (you don't need a visa to work in your own country)
• You are dispatched from an overseas parent company to a Korean branch (that is the D-7 visa scenario)

FAQ

Q. Does the KRW 100 million have to stay in the company permanently? No. Once remittance is verified and FDI registration is complete, the funds become normal business operating capital. They can be used for business expenses — rent, salaries, equipment. They do not need to sit idle in a bank account.

Q. Can the KRW 100 million be a loan from a Korean bank? No. The capital must originate from overseas and be remitted through a foreign exchange bank. Domestic Korean loans cannot be counted as FDI capital for registration purposes.

Q. What if my business loses money — can the D-8 still be renewed? Immigration does scrutinize business activity at renewal. Persistent losses without explanation may raise questions about whether the business is genuine. Maintaining payroll, client contracts, and tax filings strengthens your renewal case.

Q. Can multiple foreign investors co-invest to reach KRW 100 million? Yes. Two or more foreign investors can jointly invest in the same Korean entity, as long as each holds at least 10% individually and the combined foreign stake is at least KRW 100 million.

Q. Is there a corporate tax exemption for FDI companies? Some FDI companies qualify for corporate income tax reductions or exemptions for the first several years, depending on the industry and location. The Korea Investment Promotion Act provides incentives for high-tech manufacturing, tourism, and certain service industries. Consult a tax professional for your specific situation.

Q. Can I set up an LLC (유한회사) instead of a JSC (주식회사)? Yes. Many small FDI companies use the LLC form because it requires fewer governance formalities. Both are valid for FDI registration and D-8 visa purposes.