Official Name: South Korea
Seoul
Korean
South Korean won
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South Korea
South Korea is a country located in East Asia, sharing its northern border with North Korea. It has a rich history, dating back to the prehistoric times when its first kingdoms emerged. Throughout history, the country has experienced periods of prosperity as well as periods of foreign occupation and conflict.
Culture plays a significant role in South Korea, which is known for its unique blend of traditional and modern values. It has a rich culinary tradition, which includes popular dishes such as kimchi, bibimbap, and bulgogi. The country is also known for its pop culture, including music, dramas, and movies, which have gained popularity across Asia and the world.
South Korea has developed into one of the world’s largest economies, driven by its exports in technology, automobiles, and electronics. It has a highly educated workforce and a strong focus on innovation and research and development. Its major industries include electronics, shipbuilding, chemicals, and textiles.
The country is a democracy with a presidential system of government. Its current president is Moon Jae-in, who has been in office since 2017. The country has a multi-party system with political parties such as the Democratic Party, the Liberty Korea Party, and the Bareunmirae Party.
Overall, South Korea is a country with a rich history, culture, and economy. It has become a popular destination for both tourists and expats, offering a unique blend of traditional and modern values, opportunities for growth and development, and a high standard of living.
Types of company in South Korea
Joint-Stock Company (JSC): This is the most common type of company in South Korea. JSCs are owned by shareholders and have a board of directors. Shareholders can freely buy and sell their shares, and the liability of each shareholder is limited to their investment in the company.
Limited Liability Company (LLC): LLCs have fewer legal requirements than JSCs and are often used by small businesses. The liability of each member is limited to their investment in the company, and there is no board of directors. Instead, LLCs are managed by their members.
Partnership: There are two types of partnerships in South Korea: general partnerships and limited partnerships. In general partnerships, all partners have unlimited liability for the debts of the company. In limited partnerships, there are general partners (who have unlimited liability) and limited partners (whose liability is limited to their investment in the company).
Branch Office: A branch office is a foreign company that sets up an office in South Korea. The branch office is not a separate legal entity from the parent company, and the liability of the parent company extends to the branch office.
Representative Office: A representative office is similar to a branch office, but it is not allowed to engage in commercial activities. Instead, it is used for market research and other non-commercial activities.
Foreign-Invested Company: A foreign-invested company is a joint venture between a foreign company and a local partner. This type of company is often used by foreign companies to enter the South Korean market.
Corporation: A corporation is a type of JSC that is owned by shareholders and has a board of directors. The liability of each shareholder is limited to their investment in the company.
Advantages of company registration in South Korea:
Strong Economy: South Korea has one of the strongest and most developed economies in Asia, with a highly skilled workforce, advanced technology, and strong infrastructure.
Strategic Location: Located at the crossroads of Asia, South Korea provides easy access to major markets, including China, Japan, and Southeast Asia.
Government Support: The South Korean government offers various incentives and support programs to encourage foreign investment, including tax benefits, grants, and subsidies.
Highly Educated Workforce: South Korea has a highly educated and skilled workforce, with a high level of proficiency in English.
Strong Legal Framework: South Korea has a well-established legal system and a strong intellectual property protection regime.
Access to Capital: South Korea has a well-developed financial sector with easy access to capital markets, venture capital, and private equity.
Free Trade Agreements: South Korea has entered into numerous free trade agreements, providing companies with easy access to global markets.
Favorable Tax Regime: South Korea has a favorable tax regime for businesses, including a low corporate tax rate and numerous tax incentives for foreign investors.
Common questions:
What is the process for registering a company in South Korea?
The process for registering a company in South Korea involves several steps, including:
- Obtaining a business registration certificate from the local district office
- Obtaining a tax registration certificate from the National Tax Service
- Registering with the Korea Social Security & Welfare Corporation for employee insurance
- Registering with the Ministry of Employment and Labor for employment insurance
What are the different types of companies that can be registered in South Korea?
The different types of companies that can be registered in South Korea include:
- Sole proprietorship
- Partnership
- Limited partnership
- Limited liability company
- Stock company
How long does it take to register a company in South Korea?
The time it takes to register a company in South Korea can vary depending on the type of company and the completeness of the application. Generally, it takes between two and four weeks to complete the registration process.
What are the requirements for registering a company in South Korea?
The requirements for registering a company in South Korea include:
- At least one director
- A registered address in South Korea
- A business plan
- Proof of initial capital investment
- Articles of incorporation
- A seal registration certificate
- A business registration certificate
What documents are needed to register a company in South Korea?
The documents needed to register a company in South Korea include:
- A notarized copy of the founder’s ID or passport
- A certificate of the registered address
- A business plan
- Proof of initial capital investment
- Articles of incorporation
- A seal registration certificate
Can a foreigner register a company in South Korea?
Yes, foreigners can register a company in South Korea. However, they must obtain a visa and have a registered address in South Korea.
Is there a minimum investment required to register a company in South Korea?
There is no minimum investment required to register a company in South Korea.
What are the benefits of registering a company in South Korea?
The benefits of registering a company in South Korea include:
- Access to the Korean market
- Protection of intellectual property
- Access to government incentives
- Low corporate tax rates
What are the risks of registering a company in South Korea?
The risks of registering a company in South Korea include:
- Difficulty in navigating the local business culture
- Language barriers
- High levels of competition
- Limited access to financing
How can I find a good business partner in South Korea?
To find a good business partner in South Korea, it is recommended to network with local business associations, attend industry events, and use online business directories.
How can I obtain a business visa for South Korea?
To obtain a business visa for South Korea, you must submit a visa application along with supporting documents to the South Korean embassy or consulate in your home country.
Can I open a bank account in South Korea without registering a company?
Yes, it is possible to open a personal bank account in South Korea without registering a company. However, a registered address in South Korea is required.
What taxes do I need to pay as a registered company in South Korea?
As a registered company in South Korea, you will need to pay corporate income tax, value-added tax (VAT), and local taxes.
What is the corporate tax rate in South Korea?
The corporate tax rate in South Korea is 20%.
How can I register for VAT in South Korea?
To register for VAT in South Korea, you must submit an application to the National Tax Service.
What are the labor laws in South Korea?
The labor laws in South Korea cover topics such as minimum wage, working hours, and employee benefits.
How do I hire employees in South Korea?
To hire employees in South Korea, you must first obtain a Business Registration Certificate and register with the National Tax Service. You will also need to set up a payroll system and ensure compliance with labor laws. Job openings can be advertised through various online job portals, recruitment agencies, or local newspapers.
Can I hire foreigners in South Korea?
Yes, foreigners can be hired in South Korea, but they must meet certain requirements, such as obtaining a valid work visa and having the necessary qualifications for the job. The employer must also apply for a Foreign Employment Permit and comply with immigration laws and regulations.
What are the visa requirements for hiring foreigners in South Korea?
The specific visa requirements for hiring foreigners in South Korea will depend on the type of work and the qualifications of the foreign worker. In general, a valid work visa and a Foreign Employment Permit are required. The employer must also ensure that the foreign worker has the necessary documentation, such as a passport and proof of education or work experience.
How do I terminate an employee in South Korea?
To terminate an employee in South Korea, the employer must follow the procedures outlined in the Labor Standards Act. This includes providing written notice to the employee, offering a reasonable explanation for the termination, and paying any severance pay owed. Terminations must be based on valid reasons, such as poor performance or a restructuring of the company.
What are the legal requirements for terminating an employee in South Korea?
The legal requirements for terminating an employee in South Korea are outlined in the Labor Standards Act. Employers must provide written notice, offer an explanation, and pay any severance pay owed. Terminations must be based on valid reasons, and the employer must follow fair procedures to avoid claims of wrongful termination.
What are the benefits of hiring a local HR consultant in South Korea?
A local HR consultant can provide valuable insights into local labor laws, customs, and business practices. They can assist with recruitment, training, and compliance with regulations. They can also help navigate cultural differences and language barriers.
How can I find a good HR consultant in South Korea?
You can find a good HR consultant in South Korea through referrals, online research, or through professional networks. It is important to choose a consultant with a good reputation, relevant experience, and strong communication skills.
What is the cost of hiring an HR consultant in South Korea?
The cost of hiring an HR consultant in South Korea will depend on the specific services required and the experience and qualifications of the consultant. It is recommended to request quotes from multiple consultants and compare their services and prices.
What are the legal requirements for a company to have a physical office in South Korea?
A company in South Korea is required to have a physical office or registered address for the purposes of legal and tax compliance. The office must meet certain criteria, such as having a designated space for business operations and being located in a commercial or industrial area.
What is the cost of renting an office space in South Korea?
The cost of renting an office space in South Korea will depend on the location, size, and quality of the space. Rent can be higher in major cities such as Seoul and Busan. It is recommended to research rental prices in different areas and negotiate with landlords to find a suitable space at a reasonable price.
How can I find a good office space in South Korea?
You can find a good office space in South Korea through various real estate agencies or online platforms. It is recommended to visit the space in person and carefully review the lease agreement before signing.
Can I operate a business from a virtual office in South Korea?
Yes, it is possible to operate a business from a virtual office in South Korea. However, there are certain legal requirements that must be met, such as having a registered address and ensuring compliance with tax and commercial laws.
What are the requirements for operating a virtual office in South Korea?
To operate a virtual office in South Korea, you will need to have a local business address and a phone number. You may also need to register your virtual office with the local government.
What are the legal requirements for registering a trademark in South Korea?
To register a trademark in South Korea, you will need to file an application with the Korean Intellectual Property Office (KIPO) and follow the legal procedures. The trademark must be distinctive and not already registered by another party.
How can I protect my intellectual property in South Korea?
You can protect your intellectual property in South Korea by registering your trademark, patent, or copyright with the appropriate government agencies. You can also take legal action against anyone who infringes on your intellectual property rights.
What are the legal requirements for drafting a contract in South Korea?
Contracts in South Korea should be in writing and signed by all parties involved. The contract should be clear and include all relevant details and terms.
Can I use an English-language contract in South Korea?
English-language contracts are generally not recognized by South Korean courts. It is recommended to use a contract written in Korean or to have a Korean translation of an English-language contract.
What is the process for dispute resolution in South Korea?
Disputes in South Korea can be resolved through litigation or alternative dispute resolution (ADR) methods such as mediation or arbitration. The process for dispute resolution will depend on the specific circumstances of the case.
What are the options for alternative dispute resolution in South Korea?
The options for alternative dispute resolution in South Korea include mediation, arbitration, and conciliation.
How can I find a good lawyer in South Korea?
You can find a good lawyer in South Korea through referrals from other businesses or by searching for a lawyer who specializes in your specific legal needs.
What is the cost of hiring a lawyer in South Korea?
The cost of hiring a lawyer in South Korea will vary depending on the complexity of your legal needs and the specific lawyer you choose to hire.
What are the legal requirements for a company to conduct business in South Korea?
A company must register with the Korean government and obtain the necessary licenses and permits to conduct business in South Korea. The company must also comply with South Korean tax laws and labor regulations.
What are the regulations for importing goods to South Korea?
The regulations for importing goods to South Korea include obtaining import licenses and permits, complying with customs regulations, and paying applicable tariffs and taxes.
What are the regulations for exporting goods from South Korea?
The regulations for exporting goods from South Korea include obtaining export licenses and permits, complying with customs regulations, and complying with international trade agreements.
What are the legal requirements for hiring a shipping agent in South Korea?
There are no specific legal requirements for hiring a shipping agent in South Korea, but it is recommended to choose a reputable and experienced agent who can handle your specific shipping needs.
What is the cost of hiring a shipping agent in South Korea?
The cost of hiring a shipping agent in South Korea will depend on the specific services you require and the agent you choose to work with.
How can I find a good shipping agent in South Korea?
You can find a good shipping agent in South Korea through referrals from other businesses or by searching for an agent who specializes in your specific shipping needs.
What are the regulations for importing and exporting goods through customs in South Korea?
The regulations for importing and exporting goods through customs in South Korea include complying with customs procedures, paying applicable tariffs and taxes, and obtaining the necessary licenses and permits.
What are the regulations for exporting goods from South Korea?
Exporting goods from South Korea requires compliance with relevant laws and regulations, including obtaining necessary export licenses, meeting customs requirements, and adhering to trade agreements. Exporters must also ensure their products meet the destination country’s regulations and standards.
What are the legal requirements for hiring a shipping agent in South Korea?
There are no specific legal requirements for hiring a shipping agent in South Korea, but it is recommended to work with a reputable agent who has experience in handling international shipments.
What is the cost of hiring a shipping agent in South Korea?
The cost of hiring a shipping agent in South Korea varies depending on the services required, such as freight forwarding, customs clearance, and documentation. It is recommended to obtain quotes from multiple agents and compare their services and fees.
How can I find a good shipping agent in South Korea?
You can find a good shipping agent in South Korea through online research, referrals from other businesses, or by attending trade shows and networking events.
What are the regulations for importing and exporting goods through customs in South Korea?
Importing and exporting goods through customs in South Korea requires compliance with customs regulations, including declaring accurate and complete information, obtaining necessary permits and licenses, and paying applicable fees and taxes.
What are the requirements for obtaining an import or export license in South Korea?
The requirements for obtaining an import or export license in South Korea vary depending on the type of goods being imported or exported. Some products may require special permits or certifications. Importers and exporters may also need to provide additional documentation, such as invoices, packing lists, and bills of lading.
What is the cost of obtaining an import or export license in South Korea?
The cost of obtaining an import or export license in South Korea varies depending on the type of license and the product being imported or exported. Fees may also vary depending on the issuing agency.
How can I find a good customs broker in South Korea?
You can find a good customs broker in South Korea through online research, referrals from other businesses, or by contacting industry associations and trade organizations.
What are the legal requirements for opening a retail store in South Korea?
The legal requirements for opening a retail store in South Korea include obtaining necessary permits and licenses, registering the business with the local authorities, and complying with zoning regulations and safety standards. Retail stores may also be subject to consumer protection laws.
What are the regulations for selling products online in South Korea?
Regulations for selling products online in South Korea include compliance with consumer protection laws, ensuring secure payment and transaction systems, and providing accurate and complete product information.
What are the regulations for selling food products in South Korea?
Regulations for selling food products in South Korea include compliance with food safety and labeling standards, obtaining necessary permits and certifications, and adhering to import/export requirements for foreign food products.
What are the regulations for selling alcoholic beverages in South Korea?
Regulations for selling alcoholic beverages in South Korea include compliance with licensing requirements, minimum legal drinking age laws, and advertising and marketing regulations.
What are the regulations for selling tobacco products in South Korea?
Regulations for selling tobacco products in South Korea include compliance with licensing requirements, restrictions on advertising and marketing, and age restrictions for purchasing and using tobacco products.
Documents required to register a company:
Certificate of Incorporation: This document indicates the company’s name, address, purpose, and shareholder details.
Business Plan: A detailed business plan outlining the company’s objectives and strategy.
Articles of Association: This document outlines the company’s internal governance structure, including the roles and responsibilities of directors, the number of shares issued, and voting rights.
Identification Documents: All shareholders, directors, and officers of the company must provide copies of their passports or other identification documents.
Resident Registration Certificate: Korean citizens must provide their resident registration certificate, while foreign nationals must provide their alien registration card.
Lease Agreement: If the company has a physical location, a copy of the lease agreement is required.
Business Registration Application: A completed application form, signed by a company representative.
Seal Certificate: A company seal is required to complete the registration process. A seal certificate must be obtained from a local government office.
Proof of Paid-In Capital: A bank statement indicating that the paid-in capital has been deposited into a Korean bank account.
Tax Registration: The company must register for corporate and value-added tax.
Company registration in Free Zone –South Korea
South Korea has several free economic zones (FEZs) established to encourage foreign investment and simplify business registration procedures. To register a company in a South Korean free zone, the following documents and procedures are generally required:
Business Plan: A detailed business plan outlining the company’s objectives and strategy.
Application Form: A completed application form, signed by a company representative.
Certificate of Incorporation: This document indicates the company’s name, address, purpose, and shareholder details.
Articles of Association: This document outlines the company’s internal governance structure, including the roles and responsibilities of directors, the number of shares issued, and voting rights.
Identification Documents: All shareholders, directors, and officers of the company must provide copies of their passports or other identification documents.
Proof of Paid-In Capital: A bank statement indicating that the paid-in capital has been deposited into a Korean bank account.
Lease Agreement: If the company has a physical location, a copy of the lease agreement is required.
Tax Registration: The company must register for corporate and value-added tax.
Permission from FEZ Authority: The company must obtain permission from the relevant FEZ authority before proceeding with registration.
Type of Banks in South Korea:
There are various types of banks in South Korea, including:
Commercial Banks: These are the most common types of banks in South Korea, providing a range of financial services such as deposits, loans, and foreign exchange services to individuals, businesses, and corporations. Some of the major commercial banks in South Korea include:
- KEB Hana Bank
- KB Kookmin Bank
- Shinhan Bank
- Woori Bank
Foreign Banks: These are banks that have been established by foreign financial institutions in South Korea. They provide similar financial services to commercial banks, but they are subject to different regulations. Examples of foreign banks operating in South Korea include:
- Citibank Korea
- Deutsche Bank AG Seoul Branch
- HSBC Korea
- Standard Chartered Bank Korea
Cooperative Banks: These are financial institutions that are owned and controlled by their members, who are typically farmers, fishermen, and small business owners. They provide a range of financial services, including deposits, loans, and insurance. Examples of cooperative banks in South Korea include:
- Nonghyup Bank (National Agricultural Cooperative Federation)
- Kyongnam Bank (National Federation of Fisheries Cooperatives)
- Gyeongsangnamdo Cooperative Bank (Regional Cooperative Federation)
Development Banks: These are financial institutions that provide long-term loans and financial assistance to support economic development projects. They are typically owned by the government or public entities. Examples of development banks in South Korea include:
- Korea Development Bank (KDB)
- Export-Import Bank of Korea (KEXIM)
Internet Banks: These are banks that operate entirely online, providing financial services such as deposits, loans, and remittances through their websites and mobile apps. They are becoming increasingly popular in South Korea due to their convenience and low fees. Examples of internet banks in South Korea include:
- KakaoBank
- K-Bank
- Toss Bank
The top universities in South Korea:
Seoul National University – Rank #37 – http://www.snu.ac.kr/eng/ – Seoul
KAIST – Korea Advanced Institute of Science and Technology – Rank #39 – https://www.kaist.ac.kr/en/ – Daejeon
POSTECH – Pohang University of Science and Technology – Rank #80 – http://www.postech.ac.kr/eng/ – Pohang
Korea University – Rank #89 – https://www.korea.edu/ – Seoul
Sungkyunkwan University – Rank #92 – https://www.skku.edu/eng/ – Seoul
Yonsei University – Rank #107 – https://www.yonsei.ac.kr/en_sc/ – Seoul
Hanyang University – Rank #179 – https://www.hanyang.ac.kr/ – Seoul
Ewha Womans University – Rank #223 – https://www.ewha.ac.kr/mbs/ewhaen/ – Seoul
Kyung Hee University – Rank #259 – https://www.khu.ac.kr/eng/ – Seoul
Ulsan National Institute of Science and Technology (UNIST) – Rank #265 – https://www.unist.ac.kr/ – Ulsan
Strange or unusual to visitors in South Korea
Bowing: In South Korea, bowing is a common way of showing respect or gratitude. People may bow when greeting someone, saying goodbye, or apologizing.
Drinking culture: Drinking alcohol is a big part of Korean culture, and it is often seen as a way of bonding and socializing. It is not uncommon to see people drinking in public, such as in parks or on the street.
Personal space: South Koreans tend to stand close to each other when talking, and they may not be as conscious of personal space as people from other cultures. This can sometimes feel uncomfortable for visitors.
Food: Korean cuisine is known for its spicy and strong flavors, which can be a surprise for those who are not used to it. Additionally, some traditional Korean dishes, such as live octopus (Sannakji) or boiled silkworm pupae (Beondegi), may seem unusual to visitors.
Skin care: South Korea has a strong culture of skincare and beauty, and it is not uncommon to see both men and women wearing face masks or carrying around a variety of skincare products.
Etiquette: There are various etiquette rules that may be unfamiliar to visitors, such as taking off your shoes when entering someone’s home or certain restaurants, using both hands when receiving or giving items, and not tipping in restaurants.
“Tips for Newcomers: Adjusting to Life in South Korea”
Learn some Korean: While it’s possible to get by with English in South Korea, learning some basic Korean phrases can help you communicate with locals and make your daily life easier.
Understand the culture: South Korean culture has its own unique customs and etiquette, so it’s important to be aware of them. For example, removing your shoes before entering a home, using two hands when giving or receiving items, and bowing as a form of respect.
Be prepared for the weather: South Korea has four distinct seasons, and the weather can vary widely. Summers are hot and humid, while winters can be cold and snowy. Make sure to pack accordingly and be prepared for the weather changes.
Try the local cuisine: South Korean cuisine is diverse and delicious. Be adventurous and try new dishes, but also be aware that some Korean dishes can be quite spicy.
Join social groups: Making friends with locals and other expats can help you feel more connected and adjusted to life in South Korea. Consider joining social groups, clubs or attending events in your community to meet new people.
Get used to public transportation: South Korea has an extensive and efficient public transportation system. Familiarize yourself with the subway and bus systems to get around, and consider getting a transportation card for easy payment.
Stay connected with family and friends back home: Moving to a new country can be challenging, so it’s important to stay connected with family and friends back home for support.
Embrace the experience: Finally, remember to embrace the experience of living in a new country. South Korea has a rich culture and history, and there is always something new to discover and experience.
Top recruitment agencies in South Korea
Adecco Korea – https://www.adecco.co.kr/
Manpower Korea – https://www.manpowerkorea.co.kr/
Robert Walters Korea – https://www.robertwalters.co.kr/
Hays Korea – https://www.hays.co.kr/
Morgan Philips Group Korea – https://www.morganphilipsglobal.com/locations/korea/
Kelly Services Korea – https://www.kellyservices.co.kr/
Randstad Korea – https://www.randstad.co.kr/
Michael Page Korea – https://www.michaelpage.co.kr/
Korn Ferry Korea – https://www.kornferry.com/
Headhunt Korea – https://www.headhunt.co.kr/
Necessary Phone Numbers in South Korea
- Emergency Services: 112 (for police, fire, or ambulance)
- Korea Centers for Disease Control and Prevention: 1339 (for health advice and COVID-19 related queries)
- National Police Agency: 182 (for non-emergency situations)
- Women’s Emergency Hotline: 1366 (for women experiencing domestic violence)
- Child Abuse Hotline: 1577-1366 (for child abuse and neglect)
- Suicide Prevention Hotline: 1393 (for emotional support and counseling)
- Korea Tourism Organization: 1330 (for tourism-related information)
- Korea Customs Service: 1588-5644 (for information on importing and exporting goods)
- Korea Immigration Service: +82-1345 (for information on visas and immigration)
- National Tax Service: 1588-0560 (for tax-related queries)
