Starting a Business in Korea: Visa & Legal Requirements
South Korea has become a popular destination for foreign entrepreneurs seeking to tap into one of Asia's most advanced economies. Whether you're attracted by the Korean startup ecosystem, the highly connected digital market, or simply want to open a small shop, starting a business in Korea as a foreigner is possible—though it requires careful planning.
This guide covers the visa options for foreign business owners, the legal steps to register a business, and essential information about taxes, capital requirements, and the D-8 investor visa in Korea. Whether you're a solo founder, startup enthusiast, or planning to open a branch office of a foreign company, you'll find the guidance needed to navigate the legal process.
1. Can a Foreigner Start a Business in Korea?
Yes, foreigners can legally start a business in South Korea. However, you must meet specific visa and capital requirements. Your options include:
- Start a new company
- Invest in an existing Korean business
- Set up a branch or liaison office of a foreign company
Most importantly, you need to obtain the correct visa status, typically the D-8 (Business Investment Visa).
2. Visa Options for Foreign Entrepreneurs
The most common visas for foreign business owners in Korea are:
🔹 D-8-1 (Foreign Investment Visa)
This is the primary visa for entrepreneurs establishing a corporation in Korea. To qualify, you must:
- Invest at least 100 million KRW (~$75,000 USD)
- Register your business as a corporation
- Be directly involved in the business management
🔹 D-8-4 (Technology Startup Visa)
Perfect for startup founders with a focus on tech or innovation. To apply, you'll need:
- A startup incubator or support center to sponsor you
- A viable business model
- Evaluation by a government agency like KISED
🔹 D-10 (Job-Seeking / Preparation Visa)
While not a business visa, the D-10 serves those who are in the early stages of setting up and need time to apply for D-8.
3. Step-by-Step Guide to Registering a Business in Korea
✅ Step 1: Decide on Your Business Structure
Popular legal entities include:
- Sole Proprietorship (개인사업자) – Simple to set up, but limited liability.
- Limited Liability Company (유한회사)
- Corporation (주식회사) – Recommended for the D-8 visa.
- Branch Office – Extension of a foreign company.
- Liaison Office – Can operate but cannot earn revenue.
💡 If you want to get a D-8 visa, incorporating as a corporation (주식회사) is usually required.
✅ Step 2: Secure a Business Address
You must provide a physical business address in Korea. Virtual offices or co-working spaces are commonly accepted during registration, especially for startups.
✅ Step 3: Deposit Capital & Open a Bank Account
For D-8 visa applicants, you must deposit at least 100 million KRW into a Korean corporate bank account under your company's name. These funds must be used for business operations.
✅ Step 4: Register the Company
Register your business at your local tax office and court registry. You'll need:
- Business name (check for duplicates)
- Articles of incorporation
- Director(s) information
- Office lease agreement
- Proof of capital
Upon approval, you'll receive a Business Registration Certificate (사업자등록증).
✅ Step 5: Apply for Your D-8 Visa
Submit your company registration, capital verification, business plan, and office documents to the Korea Immigration Office. The D-8 visa is typically issued for 1 year, with renewals based on business performance.
4. Taxes and Accounting for Foreign-Owned Businesses
Running a company in Korea requires compliance with Korean tax law, including:
- Corporate Income Tax: Ranges from 10%–22%
- VAT (Value Added Tax): 10% on most goods and services
- Withholding Tax: May apply to dividends and salaries
- Monthly & Annual Tax Filings
You must appoint a tax accountant or service to handle:
- Quarterly VAT filings
- Annual tax return (May of each year)
- Payroll and social insurance submissions
5. Hiring and Employment
If you plan to hire Korean employees, you must register with:
- National Health Insurance (NHI)
- National Pension Service (NPS)
- Employment Insurance
- Industrial Accident Compensation Insurance
All employees (including the foreign business owner on D-8) must be enrolled in these systems.
6. Challenges for Foreign Entrepreneurs in Korea
While Korea is highly business-friendly, several challenges exist:
- Language barrier: Many legal documents are in Korean only.
- Strict immigration rules: Visa renewals are tied to business performance.
- High initial investment: ₩100 million is a significant barrier for small startups.
- Limited access to local funding: Many government grants and programs are restricted to Korean citizens or long-term residents.
7. Support Systems for Foreign Startups
Korea has strengthened its support for foreign founders through:
🔹 K-Startup Grand Challenge
A global competition for tech startups offering funding, office space, mentorship, and visa support.
🔹 KISED (Korea Institute of Startup & Entrepreneurship Development)
Offers programs for foreigners through the OASIS visa support system.
🔹 Seoul Global Center
Provides legal, business, and visa consultations in English.
8. FAQs About Starting a Business in Korea as a Foreigner
🔸 Can I start a business in Korea on a tourist visa?
No. You need a valid business visa like D-8 to legally run a company.
🔸 Can freelancers register a business?
Yes, many freelancers in Korea register as self-employed (개인사업자). This structure works well for content creators, consultants, and teachers.
🔸 Is a Korean partner required?
No, but having a local co-founder or advisor can facilitate banking, legal, and language matters.
Starting a business in Korea as a foreigner is increasingly accessible thanks to visa reforms and startup support. Success depends on meeting legal requirements, selecting the appropriate visa (like the D-8), and maintaining accurate registration and tax compliance.
With its dynamic economy, robust infrastructure, and growing international appeal, Korea has become an attractive destination for global entrepreneurs. Through careful planning and proper guidance, you can become part of Korea's thriving business community and transform your ideas into reality.
⚠️ Business setup and visa requirements can be subject to change. It is highly recommended to get professional advice from a business lawyer, certified consultant or the Korea Business Center (KOTRA) to ensure proper compliance.
