INVESTMENT IN KOREA

There are some facts you need to know about Korea before you start thinking of establishing your enterprise. It is a country which is known for a competitive modern economy. It is the world’s 11th largest economies by nominal GDP and the world’s fifth largest exporter. The population which is fifty-one point six million enjoying smart city life with all trending technologies and dynamic life. The best word to describe them is “Bees” it is common to see Koreans running on the street trying to reach their work on time. Being late is not in the Korean dictionary. Fighting is the word they use in workplaces, factories and offices to achieve their goals and to encourage the employees.

The great work ethic, teamwork, and community mindset is the concept of the Korean society. After Korean War, the country barely had anything, and Koreans noticed that there is something that had to be done. They introduced the central planning, and they strictly applied it. Curbing corruption and eliminating cancer cells from society and start producing everything they need. Manufacturer communities in industrial areas presented the miracle of the industrial revaluation — the country surrounded by colorful mountains and many trees everywhere. The great public transport system allows travelers to move fast inside and between the cities. The medical and health care system in Korea is one of the best in the world; some people describe hospitals in Korea are just like heaven. The education system awarded as the world’s best education system in 2018. It is one of the safest places on the planet, Koreans are peaceful and friendly, crime is at the lowest level. You can walk around at midnight no matter what your gender is and no one disturbs you, even drunk people.

IS IT A GREAT ENVIRONMENT TO INVESTMENT? YES, SURE IT’S

SO, ARE YOU READY TO INVESTMENT IN KOREA?

1- Investing Amount

The minimum requirement of the investment amount is 100.000.000 Korean Won (Approximately $82000 USD as of August 13, 2019), which is a tiny amount compared to other countries, this amount will not be reserved at the bank for a designated period, but the investor can use it right after business registration.
*Please Note: there is no limit on the investment amount.

2- Type of business

The investors are free to choose between owning their business or having a joint venture with local companies that already exist. Both of them enjoying the same benefits and obligations and both are protected by the Law. We can divide the business type as follows:

 

a- Local Corporation which falls within the scope of direct investment and is regulated by the foreign investment promotion Act. The foreign investor and foreign-invested company are separate entities, which means independent accounting and settlement. The tax obligations exceed to domestic and overseas income.

b- Branch or a liaison office of foreign cooperation.

Both of them are governed by foreign exchange transaction Act and also described as foreign cooperation. Headquarter and branch have the same legal entity, and the tax obligations don’t extend to headquarter.

*Note: the branch is subject to undertaking sales activities and generating profit in Korea whereas the liaison office is prohibited to do so, it could carry out non-sales practices such as business contacts and market research.

3- Business Classification Forms

Private Business

Limited Partnership LTD

General Partnership

Stock companies

Limited companies LCC

The followings are standard requirement documents you need during the process of establishing a business in Korea.

• Notification form of the establishment of local corporation or a foreign company’s domestic branch.
• Certificate of appointment of the head of the domestic branch.
• Documents certifying the foreign company (headquarters)’s name, location, and major business operations. (Notarization of the location of the headquarters is required if the documents are not original copies).
• Articles of association of the headquarters
• Board meeting minutes containing the company’s plans to establish a liaison office or domestic branch in Korea and details on the appointment of its representative in Korea.
• Specifications of the line of business that the company intends to operate in Korea and the scope of business.

• Power of attorney.

All of the above documents need to be certified form the Korean embassy in your country or Apostille stamp is needed if your country is a member of Hague convention 1916.

WHAT IS THE SERVICE WE PROVIDE TO ESTABLISH YOUR COMPANY IN KOREA?

Business registration

• – Advise you with the required documents.
• – Open a temporary bank account for you.
• – File and submit all necessary documents to the official branches in Korea to register your business.
• – Register your business at tax office and court registry office.
• – Submit all registered documents to issue your commercial business certificate.
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Visa application

• – Advise which visa you need to obtain (investors visa could be D8 or D9)
• – Prepare all the documents and other requirements to submit to immigration.
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Besides, we can provide you with interpreters and other required services such as helping you locate your business office.