Foreign-Owned Corporation in Korea: Complete Guide to Setup Procedures and Costs
Setting up a stock corporation (jusik hoesa, 株式會社) in Korea as a foreigner may look straightforward on paper, but in practice the five-step sequence of foreign investment notification → capital remittance → corporate registration → business registration → foreign-invested company registration can easily push your timeline back two to three weeks if any step is taken out of order. In particular, if you plan to inject KRW 100 million or more in capital and link it to a D-8 visa, you must structure the entity as a "foreign investment" from day one — trying to convert a regular domestic corporation into one later on is where most applicants get stuck.
Setting capital aside, the actual out-of-pocket cost to establish the company — registration license tax, local education tax, notary fees, registration filing fees, and administrative agent fees combined — typically lands somewhere between KRW 1.2 million and KRW 2.5 million. To qualify as a foreign investment, the capital must be at least KRW 100 million; if you are also targeting a D-8 visa, that amount must be wired from an overseas account held in your own name. If you cannot account for that money trail clearly, your application will stall right at this stage.
1. Foreign-Owned Corporation Setup: The Essentials First
Why Most Foreigners Pick the Stock Corporation Format
Foreigners setting up a company in Korea can choose from five legal forms: stock corporation (jusik hoesa), limited company (yuhan hoesa), limited liability company (yuhan chaegim hoesa), general partnership, and limited partnership. The most common choice in practice is the stock corporation, followed by the limited company. The reason is simple: stock corporations are the easiest to work with when raising outside investment, transferring shares, linking the entity to a visa, or having the parent company recognize the Korean subsidiary.
Many investors avoid the limited company because all members are listed on the registry and visible to the public. That said, European or Japanese parent companies sometimes prefer the limited company format. U.S.-headquartered groups generally default to the stock corporation.
Why You Have to Start as a "Foreign Investment" From the Outset
The single most overlooked detail is the timing of the capital remittance. If a foreigner first sets up a regular stock corporation under a Korean national's name and later takes over the shares, the transaction is not recognized as foreign investment under the Foreign Investment Promotion Act. You need to file the foreign investment notification with KOTRA or a foreign exchange bank from the very beginning, then wire the capital using that notification number as the basis.
Get this sequence wrong, and at the D-8 visa screening stage the authorities will rule that "this money is not foreign investment capital." You end up with a company on paper but no visa.
2. Foreign-Invested Company vs. Regular Stock Corporation
Same Company Type, Very Different Legal Status
Even when both entities call themselves "stock corporations," a company registered as a foreign-invested enterprise and a regular Korean corporation that simply happens to have foreign shareholders are two completely different animals in practice. The foreign-invested company receives a separate registration number under the Foreign Investment Promotion Act and is eligible for tax breaks, leases on state-owned land, and visa linkage benefits.
Side-by-Side Comparison
| Category | Foreign-Invested Company (FDI) | Regular Stock Corp. (Foreign Shareholding) |
|---|---|---|
| Minimum capital | KRW 100M+ per investor (10%+ stake) | No minimum (can effectively be KRW 1M) |
| Filing authority | [KOTRA](https://www.kotra.or.kr) or designated FX bank (FDI notification) | No separate filing |
| D-8 visa eligibility | Yes (investment record recognized) | No |
| FDI registration certificate | Issued | Not issued |
| Tax breaks / subsidies | Eligible (if industry/region requirements are met) | Not eligible |
| Capital remittance rules | From an overseas account in the investor's own name, tied to the FDI notification number | No restrictions |
Which One Should You Pick?
The bottom line is this: if you intend to personally run the business in Korea and live here on that basis, you have no choice but to go FDI. If your only goal is to set up a Korean subsidiary purely for accounting and management purposes, a regular corporation works fine. But in that case, the D-8 visa is off the table, so you will need to arrange a Specially Assigned (D-7) visa or another residence status.
3. Pre-Setup Preparations and Required Documents
Documents the Investor Personally Prepares
Most documents the foreign individual has to provide must be issued in the home country and brought to Korea, with either an Apostille or consular certification already attached. Even when there is a long checklist, the actual review tends to come down to one thing: "Was the signature notarization done correctly?"
Copy of passport (with at least 6 months of validity remaining)
Proof of home-country address (residency certificate, driver's license, etc.)
Notarized signature (notarized at home or at the home country's embassy in Korea)
Apostille or consular certification attached to the above
Documentation explaining the source of investment funds (bank balance, salary, sale proceeds)
Alien Registration Card or temporary residential address while in Korea
When the Investor Is a Corporate Parent
If an overseas parent company is establishing a Korean subsidiary, the parent-side paperwork is considerably more demanding.
| Category | Document | Key Verification Point |
|---|---|---|
| Parent registration | Certificate of Incorporation | Apostille or consular certification required |
| Authority to act | Board resolution (approving Korean subsidiary) | Proof of signatory authority also required |
| Delegation | Power of Attorney (POA) | Notarization + Apostille |
| Financials | Latest audit report or financial statements | Demonstrates investment capacity |
| Signatures | Notarized Signature Card | Most common item flagged by registry for correction |
What You Need on the Korean Side
Even with all the parent or investor documents in order, securing a Korean office address has to come first. This is usually where things stall. While it is technically possible to register a corporation at a residential address or co-working space, certain industries (finance, healthcare, education) require an actual business-capable space. And during the D-8 visa review, the question "Can business actually be conducted at this address?" gets asked again.
4. Step-by-Step Setup Procedure
The Full Sequence at a Glance
| Step | Action | Authority | Duration |
|---|---|---|---|
| 1 | Trade name search and office address confirmation | Internet Registry Office / landlord | 1–3 days |
| 2 | Foreign investment notification | [KOTRA](https://www.kotra.or.kr) or designated FX bank | 1–2 days |
| 3 | Overseas remittance of capital | Designated FX bank | 2–5 days |
| 4 | Drafting and notarization of articles of incorporation, promoters' meeting | Notary office | 1–2 days |
| 5 | Corporate registration | District registry office | 3–7 days |
| 6 | Business registration | District tax office | 2–5 days |
| 7 | Foreign-invested company registration | [KOTRA](https://www.kotra.or.kr) or FX bank | 1–3 days |
| 8 | Corporate bank account, four major insurance enrollments | Bank / public agencies | 3–7 days |
Step 1: Trade Name Check and Address Confirmation
The registration will be denied if a confusingly similar trade name already exists. Search for it in advance through the Supreme Court's Internet Registry Office. Decisions about whether to include the industry name and whether to list an English trade name in parallel are also made at this stage.
Step 2: Foreign Investment Notification
Before remitting any capital, you must file the "foreign investment notification." Without that notification number, the bank will not accept the inbound wire as "foreign investment funds," and you will not be able to register the entity later as a foreign-invested company. Reverse the order, and everything stops.
Step 3: Capital Remittance
The remittance is sent from an overseas account in your own name to a temporary Korean account in the promoter's (post-setup CEO's) own name, or directly to the designated foreign exchange bank. The remittance purpose must be specified as "Foreign Direct Investment."
Step 4: Articles of Incorporation and Notarization
The articles of incorporation cover the trade name, business purpose, location of the head office, total number of authorized shares, par value per share, and information on directors and auditors. If there is only one promoter, a promoter's resolution replaces the shareholders' meeting resolution. Notarization of the articles can be skipped when capital is below KRW 1 billion.
Step 5: Corporate Registration
The order is: pay registration license tax and local education tax → submit the registration application → receive the corporate registry. This typically takes 3–5 days, longer if any document corrections are required.
Step 6: Business Registration
Once you have the corporate registry, you file for business registration at the district tax office. If a foreigner serves as CEO, certain industries — such as e-commerce and food service — require additional permits or licenses to be obtained first.
Step 7: Foreign-Invested Company Registration
After business registration is complete, you obtain the foreign-invested company registration certificate from KOTRA or the foreign exchange bank where you originally filed. That certificate is your gateway to the D-8 visa application.
Step 8: Corporate Account and Four Major Insurances
This is where actual business operations begin. Recently, opening a corporate bank account in the name of a foreign CEO has become significantly harder. More banks now require an on-site office inspection, an interview with the representative, and proof of Korean residence.
5. Capital and Setup Costs: The Actual Numbers
Capital Requirements
To be recognized as a foreign-invested company, the baseline requirement is at least KRW 100 million per investor and a minimum 10% equity stake. With two or more co-investors, each must individually meet the KRW 100 million threshold to be registered as "each one's foreign investment." If one person puts in KRW 100 million and another puts in KRW 50 million, the KRW 50 million side will not be recognized as foreign investment.
Cost Breakdown (Excluding Capital)
| Item | Approx. Amount | Basis |
|---|---|---|
| Registration license tax | Capital × 0.4% (3× surcharge in Seoul Metropolitan over-concentration zones) | Local Tax Act |
| Local education tax | 20% of registration license tax | Local Tax Act |
| Registration application fee | Approx. KRW 30,000 | Registry Office regulations |
| Articles notarization fee | Approx. KRW 200,000–300,000 (waivable when capital is under KRW 1B) | Notary fee schedule |
| Translation and notarization expenses | KRW 100,000–400,000 | Document volume |
| Administrative agent / judicial scrivener fee | KRW 800,000–1,800,000 | Office and scope of work |
| Bank wire fees | KRW 30,000–100,000 | Amount and currency |
Approximate Total at KRW 100 Million Capital
For a stock corporation capitalized at KRW 100 million in the Seoul Metropolitan over-concentration zone (covering Seoul and parts of Gyeonggi), the realistic out-of-pocket numbers look like this:
- Registration license tax + local education tax: about KRW 1,440,000 (KRW 100M × 0.4% × 3 + 20% education tax)
- Registration, notarization, and translation expenses: about KRW 300,000–500,000
- Administrative agent fees: about KRW 1,000,000–1,800,000
- Total out-of-pocket: roughly KRW 2,800,000–3,800,000
If you locate the head office outside the metropolitan zone, the 3× surcharge on the registration license tax does not apply, which trims roughly KRW 600,000–800,000 off the total. With KRW 200 million in capital, the registration license tax doubles, pushing the total into the KRW 4 million range.
6. Mandatory Post-Incorporation Steps
Enrollment in the Four Major Insurances
Even a foreign CEO is, in principle, subject to enrollment in the four major insurances (national pension, health insurance, employment insurance, and industrial accident insurance) once they receive a salary from the Korean entity. A non-resident director who draws no salary may be exempt from employment insurance. Health insurance is tied to residence status and converts from regional to workplace-based coverage once the D-8 visa is issued.
Corporate Bank Account and Cards
Banks will only open a corporate account after reviewing the actual office, interviewing the representative, and inspecting the articles of incorporation, corporate registry, business registration certificate, and seal certificate. A corporation owned solely by a single foreign representative is scrutinized especially closely for "real business viability." This step typically requires two or three back-and-forth attempts.
Tax and Accounting Setup
- Issuance of an electronic tax invoice certificate
- Public certificate for Hometax login
- Bookkeeping outsourcing contract (around KRW 100,000–200,000 per month)
- VAT filings (January and July)
- Corporate income tax filing (within 3 months after fiscal year-end)
Industry-Specific Permits
| Industry | Additional Permit | Authority |
|---|---|---|
| Import/export, distribution | Customs identification code | Korea Customs Service |
| E-commerce / mail-order sales | Mail-order business registration | City/county/district office |
| Food service | Business permit, food safety training | Public health center, MFDS |
| Worker dispatch | Worker dispatch business license | Ministry of Employment and Labor |
| Travel agency | Domestic, outbound, or general travel business registration | City/provincial tourism office |
| Cosmetics import | Cosmetics responsible distributor registration | MFDS |
7. Key Points When Linking to a D-8 Visa
How a D-8 Visa Gets Issued
A foreign CEO who wants to actually work for their own corporation in Korea needs a D-8 (Corporate Investor) visa. The sequence is incorporation → foreign-invested company registration → D-8 visa application. With only the corporate registry but no foreign-invested company certificate in hand, no D-8 will be issued.
Where Applications Actually Get Stuck
The first thing to look at is the explanation of the source of funds. Even if the money is sitting in your account, a weak narrative around its origin can derail everything. Reviewers will ask: "Where did this KRW 100 million come from? How did it accumulate over the past 3–12 months? Is it really under your name?" When it comes to the business plan, alignment between your numbers and your stated industry matters more than length.
Office Reality Check
The D-8 review evaluates not just the address itself but whether actual business activities can be conducted in that space. Companies set up at co-working memberships, virtual offices, or home addresses are frequently asked to submit additional documentation. Real-world cases have required lease agreements, utility bill receipts, photos of the office, and even photos of the company sign.
Comparison of Specific Eligibility Requirements
| Category | D-8 (Corporate Investor) | D-9 (Trade Management) | D-10 (Job Seeker) |
|---|---|---|---|
| Eligible applicants | Executives of foreign-invested companies | Individual or corporate operators with import/export track record | Job seekers |
| Capital threshold | KRW 100 million or more | KRW 300 million or more in performance | N/A |
| Stay duration | Up to 5 years, renewable | Up to 2 years, renewable | 6 months, one renewal |
| F-2 / F-5 transition | Available (extra points under the points-based system) | Limited | Not available |
8. Common Mistakes
Mistake 1: Setting Up Under a Korean's Name First, Then Transferring Shares
This is the most frequently seen mistake. The "let's first set it up under a Korean friend's name and switch later once we are settled" approach does not qualify as foreign investment. The share transfer itself is legal, but the funds used for the acquisition are classified as a regular capital transaction, not as foreign investment capital.
Mistake 2: Skipping the Foreign Investment Notification Before Remitting Capital
If you wire the money before filing the foreign investment notification, the bank treats it as a "general gift" or "funds of unknown purpose." Money that comes in this way cannot be registered as foreign investment performance, so you have to pull it out and re-remit it later.
Mistake 3: Notarizing Signatures at Home but Stopping There
If you only obtain notarization in your home country and skip the Apostille or consular certification, the registry office will reject the filing. The point that trips most people up is that "notarization is not the same thing as international authentication."
Mistake 4: Registering Too Narrow a Business Scope
If you define the business purpose too narrowly during setup, adding a different line of business later will require an articles amendment registration. It is generally smarter to include related industries from the outset. That said, the D-8 review focuses on the industries you actually intend to operate in, so endlessly padding the list is also something to avoid.
Mistake 5: Choosing a Head Office Location Without Knowing the Metropolitan Surcharge
If you place the head office in an over-concentration zone such as Seoul, Suwon, or Seongnam, the registration license tax is tripled. At KRW 100 million in capital, that is roughly KRW 400,000 versus KRW 1,200,000. The larger your capital, the wider this gap becomes.
Mistake 6: Pushing Through the Whole Process Without an Alien Registration
A foreign CEO can technically establish a corporation without holding a Korean Alien Registration Card. However, opening the corporate bank account, obtaining a digital certificate for online use, and issuing electronic tax invoices through Hometax all require an alien registration number. This is why many companies end up incorporated but unable to actually operate.
9. Frequently Asked Questions (FAQ)
Q1. Can a friend wire the capital on my behalf?
No. Foreign investment capital must originate from an overseas account in the investor's own name to be recognized. If it passes through a friend's or family member's account, the bank will not classify it as "foreign investment funds." A weak link here will also immediately trip up the D-8 visa review. If there is no other option, you must execute a gift agreement and file gift tax to convert the money into your own personally held funds before remitting.
Q2. Does the entire KRW 100 million in capital really have to be sent in cash?
In principle, yes — it is a cash remittance. That said, the Foreign Investment Promotion Act also recognizes in-kind contributions of machinery and equipment as foreign investment. Because that route adds appraisal, customs clearance, and registration steps, it takes more time in practice and adds another KRW 2–5 million in costs. A straight cash investment is by far the fastest path.
Q3. Can a single foreigner be the sole CEO of a one-person corporation?
Yes. For stock corporations with capital under KRW 1 billion, a single director is allowed and the auditor can be omitted. A foreigner can be set up as the sole CEO. The catch is that banks scrutinize "single-foreigner-only corporations" much more closely when opening the corporate account. Bringing the office inspection materials, proof of residence, and a business plan together speeds things up considerably.
Q4. How long does the entire timeline take, from setup to visa issuance?
On average, 4–6 weeks. The breakdown is roughly: 2 weeks for document prep (home-country notarization and Apostille) + 2 weeks for incorporation and business registration + 1–2 weeks for foreign-invested company registration and the D-8 visa. Delays at the home-country notarization stage push the entire timeline back another 2–3 weeks. Small things tend to be the bottleneck — passport name discrepancies, signature mismatches, missing financial statement translations.
Q5. Can I immediately use the capital as operating funds?
Yes. Capital deposited in the corporate account can be freely spent on legitimate business expenses such as office rent, payroll, inventory, and marketing. However, when it comes time to renew the D-8 visa, the question of "Was the capital actually invested in the business?" gets revisited. You need to keep receipts, tax invoices, and bank statements on hand. If most of it appears to have moved into the representative's personal account right after incorporation, the renewal can be denied.
10. Vision Administrative Office Consultation
Setting up a foreign-owned stock corporation in Korea is a single, continuous flow — foreign investment notification → capital remittance → corporate registration → business registration → foreign-invested company registration → D-8 visa — and the sequence cannot get tangled. Reorder a single step and you risk losing investment recognition, having the visa denied, or being unable to open a bank account.
Vision Administrative Office handles foreign corporate setup, foreign investment notifications, and D-8 visas through a single point of contact. Because we design the capital structure, business scope, and office choice with the visa criteria already in mind from the setup stage, we can prevent the all-too-common situation where the company gets formed but the visa never comes through.
<strong>Phone:</strong> 02-363-2251
<strong>Email:</strong> 5000meter@gmail.com
<strong>Address:</strong> 3F, Seongwoo Building, 324 Toegye-ro, Jung-gu, Seoul (04614)
<strong>Practice areas:</strong> Foreign corporate setup · Foreign investment notification · D-8 visa · F-2/F-5 transition
For your first consultation, just bring the following: the planned investment amount, your desired industry, candidate locations for the head office, whether you have any co-investors, and your residence plans. With those in hand, we can give you concrete cost and timeline estimates on the spot.