To set up a branch office in Korea, a foreign company (1) files a domestic branch establishment report with its designated foreign exchange bank, (2) appoints a representative in Korea and registers the branch at the court registry within 3 weeks of establishing it (Commercial Act Art. 614), and (3) obtains business registration from the tax office. Until the court registration is made, the branch may not carry on continuous transactions in Korea (Commercial Act Art. 616). Staff transferred from headquarters usually apply for the D-7 (intra-company transferee) visa.
Branch office vs. liaison office vs. Korean subsidiary
| Branch office (지점) | Liaison office (사무소) | Korean subsidiary (FDI company) | |
|---|---|---|---|
| Revenue-generating business in Korea | Permitted | Not permitted — liaison, market research, R&D and other non-business functions only | Permitted |
| Legal personality | Part of the foreign parent | Part of the foreign parent | Separate Korean corporation |
| Set-up report | Designated FX bank | Designated FX bank | Foreign investment report to KOTRA or an FX bank |
| Court registration | Required (Commercial Act Art. 614) | — | Company incorporation registration |
| D-8 investor visa route | No | No | Yes (KRW 100 million+ and 10%+ voting shares) |
Source for the branch/office distinction: FX Transaction Regulations as summarised in the MOJ Visa Issuance Manual. Branches whose purpose is finance-related business other than banking, securities or insurance business, or business not permitted under other laws, report to the Minister of Economy and Finance instead of the bank.
Step-by-step setup
- Board resolution at headquarters to establish a Korean branch and appoint a representative in Korea.
- Branch establishment report to the designated foreign exchange bank (FX Transaction Regulations Art. 9-32, 9-33).
- Court registration within 3 weeks of setting up the branch. Registered items include purpose, trade name, the representative's name and address, the head-office location and the branch location (Commercial Act Art. 614(2)).
- Business registration at the tax office having jurisdiction over the branch.
- Bring in operating funds through the designated FX bank and keep the foreign-exchange purchase certificates — they are later used as proof of "operating fund introduction" for D-7 visas and extensions.
- Visas for transferred staff (D-7), see below.
Document checklist
For the bank report and court registration — typical set prepared at headquarters; the designated bank and the court registry confirm the final list. Foreign-issued documents need an apostille or consular confirmation.
- Head-office certificate of incorporation / registry extract and articles of association
- Board resolution on establishing the Korean branch and appointing the representative
- Passport copy and address of the representative in Korea
- Office lease agreement in Korea
For a D-7 visa (foreign company's domestic branch) — MOJ Visa Issuance Manual
- Application form, passport, 1 standard photo, invitation letter
- Proof of being essential professional staff (CV, employment history)
- Certificate of employment at the overseas company and dispatch order
- Copy of the branch/liaison office establishment permit or report acceptance certificate
- Proof of normal operation: operating-fund introduction record, business plan (if new), tax payment record
D-7 eligibility in one paragraph
The applicant must have worked at least 1 year at the foreign head office or its branches and be dispatched to the Korean branch as essential professional staff. The 1-year requirement does not apply to people working in national key industries or state projects, or to essential staff sent to a Korean branch whose operating-fund introduction is USD 500,000 or more. D-7 is granted up to 3 years per grant (renewable; no cap on total stay).
Frequently asked questions
Q1. Is there a minimum capital for a branch office? The Commercial Act does not set a minimum capital for a foreign company's branch. Operating funds are brought in through the designated FX bank, and the amount matters for the D-7 exemption above (USD 500,000).
Q2. What happens if we trade before the court registration? A foreign company may not carry on continuous transactions at its Korean place of business before registration, and the person who transacts is jointly liable with the company (Commercial Act Art. 616).
Q3. Can a liaison office sign sales contracts? No. A liaison office may only perform non-business functions such as liaison, market research and R&D. If you need to invoice Korean customers, set up a branch or a subsidiary.
Q4. Which visa do locally hired foreign employees need? D-7 is for staff dispatched from abroad. Foreign nationals hired in Korea need a different status of stay, reviewed case by case.
Q5. Can a branch office sponsor a D-8 investor visa? No. D-8-1 requires an investment of KRW 100 million or more in a Korean corporation (10%+ of voting shares or appointment of officers). A branch is not a separate Korean corporation.
A-One Certified Administrative Agent helps foreign companies with the FX bank report, court registration documents and D-7 visas for transferred staff. Fees vary by case and are explained during a free initial consultation.