1. Introduction

Hello,
This is Attorney Kyusung Lee from WeOn Law.

When foreign companies or individuals wish to conduct business in Korea, there are three main methods:

Today, I’d like to share insights specifically about foreign-invested companies.

This article covers the procedures and precautions for establishing a new foreign-invested company. If you have questions, I hope this article provides clarity.

If you need further advice, feel free to contact me using the information below for a consultation.

Direct Consultation with Attorney Kyu-Sung Lee
▶ Email: kslee@weonlaw.co.kr
☎ Phone: +82-2-6264-7604
Consultations can be conducted entirely in English.

2. Methods for Establishing a Foreign-Invested Company

There are two ways to establish a foreign-invested company:

For new company establishment, the process—from foreign investment reporting to registration—can be quite complex. Required documents vary depending on the investor’s nationality and status. Additionally, foreign documents often require apostilles, which can significantly increase preparation time.

Any errors or omissions in the process could lead to legal issues, so it’s safer to seek assistance from professionals experienced in this field from the outset.

3. Procedures for New Company Establishment

01. Foreign Investment Report (Processing Time: Immediate)
Foreign investment reports must be submitted in advance to KOTRA (Korea Trade-Investment Promotion Agency) or foreign exchange banks.
Required documents include:
- Two copies of the investment report
- Proof of nationality of the foreign investor
For contributions other than cash, documentation for the contributed assets is also required.

02. Transfer of Investment Funds (Processing Time: 2–3 Days)
Foreign investors can transfer funds via telegraphic transfer to a temporary account at a domestic foreign exchange bank or bring foreign currency into Korea directly. If bringing currency, the investor must declare it to customs and obtain a "Foreign Exchange Declaration Certificate."

The transferred funds must go through the process of capital deposit. Typically, this involves submitting a capital deposit certificate to the court, but for companies with capital under KRW 1 billion, a bank balance certificate can be submitted instead. Once this is done, the funds can be freely withdrawn for business purposes the following day.

03. Registration of Incorporation (Processing Time: 2–3 Days)
This step is carried out at the court registry office. You can find the necessary application forms and document checklists on the Supreme Court’s internet registry portal.

04. Obtaining Permits and Approvals (Processing Time: Varies)
If the intended business requires permits or licenses, these must be obtained from relevant authorities such as district offices, health centers, or the Ministry of Food and Drug Safety. Processing times depend on the type and category of the permits.

05. Corporate Registration and Tax Registration (Processing Time: 4–5 Days)
Corporate registration and tax registration can be done at any tax office nationwide, regardless of jurisdiction. These registrations must be completed within 20 days of starting business operations.

06. Opening a Corporate Bank Account (Processing Time: Immediate)
A corporate bank account can be opened at a foreign exchange bank. While accounts can be opened immediately, once an account is created, opening another account at a different bank is restricted for 20 business days. Choose your bank carefully.

07. Foreign-Invested Company Registration (Processing Time: 1 Day)
The final step in establishing a foreign-invested company is its registration. After the incorporation process is complete, you must register the company with the agency where the initial investment report was filed (KOTRA or a foreign exchange bank). The registration must be completed within 60 days of the contribution of the investment.

4. Key Considerations

As seen above, establishing a foreign-invested company involves numerous documents and a complex process. While the estimated timeframes for each step have been provided, unforeseen circumstances may arise, so it is advisable to allow extra time for the process.

Unlike acquiring shares in an existing company, new company establishment generally takes about 4–6 weeks after all documents are prepared and approved. Although this can be challenging to manage alone, working with an expert in this field will ensure smooth completion.

5. Attorney Kyusung Lee's Credentials

At WeOn Law, I, Attorney Kyusung Lee, bring extensive experience and expertise in foreign-invested companies, international contracts, and English-language agreements. I am available to provide direct consultations and support whenever needed.

Thank you.