For business · Market entry
Enter the Korean market with better information
Korea is one of Asia’s most advanced economies — strong in semiconductors, manufacturing, beauty, IT and logistics — and open to 100% foreign-owned companies in most sectors. This is a practical map of how foreign SMEs and international teams enter: choosing an entity, setting up, hiring, and finding partners — with the official sources to verify each step.
1 · Choose your entity
Local corporation (subsidiary)
현지법인
A separate Korean legal entity. Most common for foreign investment (FDI); qualifies for investor visas and government incentives. Usually a 주식회사 (stock company) or 유한회사 (limited company).
Branch office
지점
An extension of the foreign parent that may carry out sales and generate revenue in Korea. Not a separate legal entity; profits are attributed to the parent.
Liaison / rep office
연락사무소
For market research, liaison and promotion only — cannot conduct sales or earn revenue. Lightest footprint for early exploration.
2 · How to set up, step by step
- 1Decide the entity
Subsidiary, branch or liaison office — driven by whether you will sell in Korea, need an investor visa, or only research the market.
- 2Register the foreign investment
Report the FDI (through a designated foreign-exchange bank / KOTRA–Invest KOREA), then remit the investment capital.
- 3Incorporate
Register the company at the commercial registry (court) and obtain the business registration certificate (사업자등록증) from the tax office.
- 4Open banking & tax accounts
Corporate bank account, national tax and local tax registration, and the four social insurances once you hire.
- 5Visas & hiring
Arrange investor / work visas (e.g. D-8) and set up payroll, insurances and employment contracts under the Labor Standards Act.
3 · Hiring, payroll & partners
Employing people in Korea
Employers contribute to the four insurances and owe statutory severance (퇴직금). Budget total employer cost above gross salary. Our salary pages and calculator show the deduction breakdown.
Finding partners & distributors
Many entrants start with a Korean distributor or technology partner before incorporating. Tell us your industry in the form below and we will shortlist relevant Korean companies and expansion signals in your Market Entry Brief.
Costs and legal thresholds (registration capital, fees, timelines) change and vary by entity and sector. This guide is orientation, not legal advice — verify current figures with Invest KOREA (KOTRA), the Ministry of Justice (법무부) and the National Tax Service (국세청) before you commit.
Request a Korea Market Entry Brief
Tell us what you are researching. We will follow up with a tailored brief on entity choice, costs, hiring and the regulations that apply to your industry.
Market entry — frequently asked questions
Do I need a local partner to enter Korea?▾
No. Foreigners can own 100% of a Korean subsidiary in most sectors. A local partner or distributor is a commercial choice, not a legal requirement — though a few regulated industries have restrictions.
Branch or subsidiary — which should I choose?▾
A subsidiary (현지법인) is a separate Korean company: it isolates liability, qualifies for FDI incentives and investor visas, and is the standard route for building a real presence. A branch (지점) is simpler but is legally part of the parent, so the parent bears liability and its profits are taxed accordingly. A liaison office cannot sell or earn revenue.
How much investment do I need to register FDI?▾
Korea sets a minimum foreign direct investment threshold to qualify as registered FDI (and for investor-visa eligibility). Exact figures and conditions change — confirm the current minimum with Invest KOREA (KOTRA) or your foreign-exchange bank before committing.
What are the main costs of hiring in Korea?▾
Beyond gross salary, employers pay their share of the four insurances (pension, health, employment, industrial-accident) and must provide statutory severance pay (退職金 / 퇴직금) of roughly one month per year of service. See our salary pages for the employee-side deductions.
Where can I verify official rules?▾
Use official sources: Invest KOREA / KOTRA for FDI, the Ministry of Justice (법무부) and HiKorea for visas, the National Tax Service (국세청) for tax, and the Ministry of Employment and Labor (고용노동부) for employment rules.