Entity Formation in South Korea

Ready for a permanent Korean presence? We help you incorporate the right way, and stay alongside you for the accounting, payroll, and compliance that follow. Independent advice, including telling you when it is too early.

  • Independent advice
  • Vetted partners
  • Honest timing

What incorporating in South Korea means

A Jusik Hoesa (주식회사, JSC, joint-stock corporation) is the standard vehicle for a permanent business presence, formed by notarised Articles of Incorporation and Commercial Registry entry. Smaller or more closely held operations sometimes use a Yuhan Hoesa (유한회사, an LLC-equivalent with fewer disclosure obligations). When you form one, you become the legal employer and operator in South Korea, with full control and no per-employee EOR fees, in exchange for the setup time and the ongoing obligations.

01

Your own company

Your own JSC makes you the legal employer and operator in South Korea, with full control of employment terms and a local brand presence.

02

Lower cost at scale

No per-employee EOR fees. For permanent, proven headcount, owning the entity is more cost-effective than ongoing EOR arrangements.

03

Setup takes time

Incorporation typically takes two to four weeks, and you cannot employ anyone until Commercial Registry entry completes. Timing the move matters, which is why many companies bridge with an EOR first.

How incorporating in South Korea works, step by step

From structuring the company to operating it compliantly.

01 — Structure & prepare

We confirm incorporation is right for you, then reserve the company name, prepare the Articles of Incorporation, and arrange your registered Korean office address.

02 — Capital & notarisation

The Articles of Incorporation are notarised before a Korean notary, as required by law. There is no statutory minimum share capital, but foreign investors typically capitalise at KRW 100 million or more, the threshold under the Foreign Investment Promotion Act for the investment to count as registered Foreign Direct Investment.

03 — Register the company

The company is entered on the competent District Court’s Commercial Registry, where legal personality begins, then registered for business tax with the local National Tax Service office, and for the Foreign Investment Notification if the FDI threshold applies, so you can operate and employ compliantly.

04 — Operate & stay compliant

Business bank account, then ongoing accounting, payroll, filings, and annual reporting, all of which we can run for you.

What incorporating in South Korea costs

Two kinds of cost: the one-off formation, and the ongoing operating obligations. South Korea’s formation cost is low; the real commitment is the ongoing compliance. We give you a clear figure before you commit.

Share capital & formation

No statutory minimum share capital for a JSC, though foreign investors typically capitalise at KRW 100 million or more to secure Foreign Direct Investment status. Local registration tax runs 0.48% of paid-in capital (registration tax plus local education surtax), so roughly KRW 480,000 on a KRW 100 million company, plus notary fees typically KRW 20,000-50,000.

Corporate tax

4-tier progressive rate, raised 1 point across every bracket for fiscal years beginning on or after 1 January 2026: 10% up to KRW 200 million, 20% to KRW 20 billion, 22% to KRW 300 billion, 25% above, plus a local surtax layered on top.

VAT

Standard VAT is a flat 10%, with no reduced-rate tier and no minimum turnover to have to register at all. A simplified regime exists between KRW 80 million and KRW 104 million in annual supply value, but only for individual sole-proprietor businesses, never for a corporation.

Ongoing obligations

Accounting, monthly payroll (income tax and four-scheme social insurance), corporate tax and VAT filings, and annual financial statements, all of which we can manage for you.

Why form your Korean company through Bradford Jacobs

Why companies incorporate in South Korea through us rather than a one-off formation agent.

We advise you on the best time to incorporate

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

End-to-end, not just the paperwork

We do not disappear after registration. We stay on for the accounting, payroll, and compliance, so your company runs, not just exists.

  • Beyond registration
  • Ongoing compliance
  • One team throughout

The right specialists, in place

Notary, tax, and accounting partners we have vetted and worked with, coordinated for you, so the process moves and nothing gets missed.

  • Vetted specialists
  • Coordinated for you
  • Nothing gets missed

Two decades of formations

Two decades forming and running entities across global markets, with the local knowledge to keep you compliant and out of the common traps.

  • Incorporations
  • Legal & tax partners
  • Traps avoided

We run it after you form it

Incorporation is the start, not the finish. We stay on for accounting, payroll, tax filings, and annual accounts, so your company operates from day one without you building a local finance function.

  • Full back office
  • Accounting & payroll
  • Annual accounts

The KRW 100 million line nobody explains

A growing business hits a good quarter and someone says, let us just set up a proper Korean company. It sounds responsible. It usually is not, yet. Here is what people expect against what happens in practice.

Employment & payroll obligations

Expectation: any capital amount forms the company the same way. Reality: a JSC forms with almost no statutory minimum, but capitalising below KRW 100 million means your investment is not recognised as Foreign Direct Investment under the Foreign Investment Promotion Act, which quietly removes the D-8 investor-visa route and the FDI incentives, discovered only after the money has already moved as an ordinary foreign-exchange transaction instead.

Tax, filing & reporting obligations

Expectation: we can always reverse it. Reality: dissolving a company needs a shareholder resolution, creditor notification, and a winding-up period. And once it exists, the obligations do not stop: annual financial statements, monthly payroll filings, corporate tax and VAT returns, and (above defined size thresholds) a statutory external audit. None of this is a reason not to incorporate. It is a reason to do it at the right time, with the right partners already in place.

What we handle for your company

Beyond incorporation, we can run the full back office for your company.

Compliant payroll

Compliant Korean payroll and employment administration, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax and four-scheme social insurance calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on incorporating and running a company in South Korea.

How long does it take to incorporate in South Korea?

Typically two to four weeks once documents, capital, and the registered address are in place. You cannot legally employ anyone until Commercial Registry entry completes, which is why timing matters and why many companies bridge with an EOR first.

No statutory minimum under the Commercial Act, so there is little to deposit before you incorporate. In practice, foreign investors capitalise at KRW 100 million or more to secure Foreign Direct Investment status, which brings FDI incentives and the D-8 investor-visa route. The real cost is the ongoing accounting and compliance, which we can run for you.

Yes. There is no residency or citizenship requirement for shareholders or directors; a non-resident individual can be sole shareholder and sole director, managing remotely. A JSC normally needs at least 3 directors, but a single director suffices where capital is under KRW 1 billion, the common case for foreign subsidiaries. You will need a registered Korean office, which we arrange.

Incorporate when you have permanent, proven headcount and want full control, and the per-head savings justify the ongoing costs. Use EOR while you are still validating the market or need people working quickly. Most companies start with EOR and incorporate later. We advise on the crossover.

Accounting, monthly payroll (income tax and four-scheme social insurance), corporate tax and VAT filings, and annual financial statements (plus a statutory external audit above defined size thresholds). We can run all of it so the entity stays compliant without you building a local finance function.

Yes, and it is how most companies use us. Beyond incorporation we provide ongoing accounting, payroll, and compliance, so your Korean company operates smoothly from day one without hiring locally for back office.

Ready to form your company in South Korea?

Tell us your plans for South Korea and we will tell you honestly whether now is the time to incorporate, then handle it end to end if it is, usually scoped within a day. No formation-mill upsell, just the right call.

Tax, company, and labour data verified July 2026 (National Tax Service, National Pension Service, the Korean Commercial Registry, PwC). Figures change; we confirm the current position when we scope your formation.