If you’re asking how to expand business to South Korea, you’re in the right place. Korea is Asia’s fourth-largest economy, a fully developed high-income market with a $1.7 trillion GDP, and one of the most extensive FTA networks in the world. This guide walks you through the practical steps โ legal structures, timelines, costs, and what to prepare.
Ready to start the process?
Pearson & Partners Korea manages Korea incorporation, EOR, payroll and tax compliance for foreign companies โ end to end.
Step 1: Choose Your Legal Structure
Before registering, decide how you want to operate in Korea:
| Structure | Best For | Revenue? |
|---|---|---|
| Korean Subsidiary (Jusik Hoesa) | Full local operations | โ Yes |
| Branch Office | Limited commercial activity | โ Yes |
| Liaison Office | Market research only | โ No |
| Employer of Record (EOR) | Hiring without a legal entity | โ Via EOR |
For most foreign companies entering Korea commercially, a Korean subsidiary (Jusik Hoesa) is the standard and most flexible option.
Step 2: Prepare Your Documents
Foreign investors must complete two steps beyond standard registration:
- Foreign Investment Notification โ filed before capital remittance
- Investment Registration โ filed with the Korea Development Bank or authorised foreign exchange bank
Documents typically required:
- Apostilled certificate of incorporation from your home country
- Certified translation of all foreign documents into Korean
- Articles of association / constitutional documents
- Passport copies of all directors and shareholders
- Proof of registered address in Korea
Pro tip: Prepare your apostille and certified translations before you begin โ this is the step that most commonly causes delays.
Step 3: Register with the Korean Authorities
Once documents are ready, registration involves:
- Court Registry โ legal formation of the entity
- Tax Office Registration โ corporate tax ID (์ฌ์ ์๋ฑ๋ก๋ฒํธ)
- National Pension / Health Insurance โ employer enrolment for any Korean employees
A well-prepared application can be completed in approximately two weeks. Bank account opening typically adds one to four weeks depending on the bank’s KYC process.
[Link: pearsonkorea.com/company-registration-korea]
Step 4: Set Up Payroll and Tax Compliance
Once registered, you’ll need to set up:
- Monthly payroll processing in KRW
- Withholding tax on employee salaries
- Corporate income tax filings (quarterly prepayments, annual return)
- VAT registration if supplying goods or services in Korea
Korea’s corporate tax rates for 2026: [Insert current NTS rates]
[Link: pearsonkorea.com/payroll-korea]
Step 5: Hire Your Team (or Use EOR First)
If you need to hire Korean employees before your entity is fully set up, an Employer of Record (EOR) allows you to onboard staff legally within days โ no legal entity required.
EOR is also used by companies testing the Korean market before committing to a full subsidiary.
[Link: pearsonkorea.com/eor-korea]
How Long Does It Take?
| Stage | Typical Timeline |
|---|---|
| Document preparation (apostille, translation) | 1โ3 weeks |
| Foreign investment notification | 1โ3 business days |
| Court registration | 3โ7 business days |
| Tax office registration | 1โ3 business days |
| Bank account opening | 1โ4 weeks |
| Total | 3โ6 weeks |
How Much Does It Cost?
Costs vary by service provider and complexity, but typical ranges:
- Government registration fees: Low (under KRW 500,000)
- Minimum paid-in capital: No statutory minimum for most structures
- Professional service fees: Varies โ contact Pearson & Partners Korea for a quote
Ready to expand your business to South Korea?
Pearson & Partners Korea provides complete incorporation, EOR, payroll, and tax compliance services for foreign companies entering Korea.
