Company Formation & Foreign Investment in Korea
FDI company setup, branch/liaison office establishment under the Foreign Investment Promotion Act (FIPA)
Foreign Investment Overview
To conduct business in Korea, foreigners can establish a foreign-invested company under the Foreign Investment Promotion Act (FIPA), set up a branch office of a foreign company, or establish a liaison office. Choosing the optimal entry structure based on your business purpose and scale is crucial.
- FDI Company: Min. KRW 100M investment, independent legal entity, tax incentives available
- Branch Office: Business under parent company name, no separate entity needed, parent has unlimited liability
- Liaison Office: Non-business activities like market research, preparation for Korea entry
- Process: Investment report → Fund transfer → Registration → Business registration
Foreign-Invested Company Setup
FDI company establishment and registration under FIPA
Establish an independent legal entity in Korea with min. KRW 100M investment under FIPA. Full support from investment report to corporate registration.
Set up a wholly-owned or joint venture subsidiary in Korea. Independent legal entity for business activities.
Joint investment between foreign investors and Korean partners to establish a corporation.
Branch / Liaison Office Setup
Establishing business presence in Korea for foreign companies
Register a branch office for a foreign company to conduct business in Korea under the parent company name.
Convert an existing branch to an independent subsidiary. Asset/liability transfer and tax processing.
Liaison Office Setup
Preliminary step for entering the Korean market
Office for non-business activities such as market research and information gathering before entering the Korean market.
Convert a liaison office to a branch or corporation capable of business activities.
Investment Support Services
Comprehensive support for successful Korea market entry
Preparation and filing of foreign investment report through KOTRA or foreign exchange bank.
D-8 corporate investment visa application for FDI company CEO and executives.
Tax office business registration, industry-specific permits, social insurance enrollment.
FDI Company Setup Process
Systematic 6-step process from investment report to business launch
Initial Consultation & Entry Structure
Analyze business purpose, scale, and industry to determine the optimal entry form: company, branch, or liaison office.
Foreign Investment Report
Submit foreign investment report to KOTRA or a foreign exchange bank.
Investment Fund Transfer
Transfer investment funds from overseas to a dedicated account in Korea (min. KRW 100M for company).
Corporate / Branch Registration
Complete corporate registration or foreign company branch registration at the court registry.
Business Registration & Permits
Register the business at the tax office and obtain necessary industry permits.
FDI Company Registration
Complete FDI company registration with MOTIE (KOTRA) and receive the registration certificate.
Frequently Asked Questions
Common questions about foreign investment and company formation
What is the minimum investment for an FDI company?
Under FIPA, a minimum investment of KRW 100 million is required. Funds must be transferred from overseas; domestic funds are not recognized as foreign investment. Technology investment may have different criteria.
What is the difference between a company, branch, and liaison office?
An FDI company is an independent legal entity with limited liability and tax incentive eligibility. A branch operates under the parent company with unlimited liability. A liaison office can only conduct non-business activities like market research.
What visa does an FDI company CEO get?
FDI company CEOs and executives can apply for a D-8 (Corporate Investment) visa. Branch/liaison office staff apply for D-7 (Intra-company Transfer). F-5 (Permanent Residency) may also be considered for large investments.
How long does company formation take?
Typically 2-4 weeks from investment report to business registration, depending on document readiness. An additional 1-2 weeks may be needed for overseas document notarization/apostille.
What tax benefits do FDI companies receive?
Qualifying businesses (high-tech, industrial support services, etc.) may receive corporate/income tax reductions (up to 7 years), customs exemptions, and local tax reductions. Benefits vary by investment amount, industry, and location.
Free Korea Entry Consultation
We will recommend the optimal Korea market entry strategy for your business. Consult directly with our licensed foreign investment specialists.