How to organize
your business in Korea?
Generally speaking, foreign corporation
can consider the following three types of business
presence in Korea:
(or representative) office
The concept of "Liaison office"
as stipulated in the Korean tax laws is different
from it generally understood by foreigners. Under
Korean tax laws, liaison office means the business
place in Korea which is utilized solely for non-income-producing
liaison activities such as (1) purchase goods, (2)storing
or displaying goods not for sale,(3)market research
or other similar activities of preliminary or auxiliary
However, if the intended scope of activities
in Korea exceed the liaison activities as described
above, you should establish a branch office instead
of a liaison office. For example,if you sell goods
or services through office in Korea, you need to establish
a branch in Korea.
Joint venture which is incorporated
by Korean laws, it will be deemed Korean company for
tax purpose. It must be established in accordance
with the regulations under the Korean commercial law.
There are the following four types of joint venture
according to the scope (limited or unlimited) or the
type (direct or indirect) of the liabilities borne
by the investors: