South Korea, officially the Republic of Korea (ROK), ranked 10th globally for nominal Gross Domestic Product at 1,823 billion US dollars in 2021, a 1.92% share of the world economy. Exports and construction helped an 11-year high level of growth in 2021, with further growth of 3% predicted for 2022 as domestic demand and tourism rebound. Per capita GDP of US$35,196 ranks 29th in the world. South Korea has the fourth largest economy in Asia, behind China, Japan, and India.
International companies planning to run their own payroll in South Korea must establish a subsidiary – preferably in one of the economic free zones. The typical choice for a subsidiary is a Foreign Invested Enterprise (FIE) limited liability company, known as a Yuhan Hoesa, under the Foreign Investment Promotion Act (FIPA).
So, the potential is there to reward expansion, but there are effective alternatives to the complexities of setting up a subsidiary. If you are ready to move into South Korea, Bradford Jacobs can step in from the first day with our Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms and networks … and you can be operational in days.