International Freight Forwarding Business License in 2024
Setting up an International Freight Forwarding Business in South Korea is straight forward process. However, the same requires to expertise with liaising multiple Government Authorities of South Korea. The entire process can be completed in 3 months and does not require our Client to travel to South Korea. Below is the summary of International Freight Forwarding Company setup.
| Business licensing considerations | Business license details |
|---|---|
| Type of entity | LLC |
| Resident director required? | No |
| Minimum number of directors | 1 |
| Resident shareholder required? | No |
| Local agent is required? | No |
| Lease agreement required? | Yes |
| Minimum number of shareholders? | 1 |
| Type of business license? | International Logistics Forwarding Business |
| Minimum paid up capital | KRW 300million (US$264,000) |
| Mandatory guarantee insurance required? | Yes |
| Insurance to be obtained from approved insurer? | Seoul Guarantee Insurance |
| Application submission government fee | KRW 38,000 (US$40) |
| Timeframe to prepare application | 1 week |
| Timeframe for government approval | 3 weeks |
| Annual license cost | Insurance premium fee (US$600 approximately) |
| License valid for | 3 years |
| Freight forwarding business license regulation | Logistics Policies Framework Act (LPFA). |
| Freight forwarding business license regulator | Ministry of Land, Infrastructure and Transport |
| Healy Consultants Group’s freight forwarding business setup package | US$22,303 |
Healy Consultants Group will prepare a quality business license application required for the international freight forwarding business license, below is the summary of due diligence checklist required for the international freight forwarding business license application:
| No. | Business license application due diligence checklist | Mandatory? |
|---|---|---|
| 1. | Certificate of deposit confirming ITT Korea has paid up capital of KRW 300million (US$264,000); | Yes |
| 2. | Certificate of surety insurance* exceeding KRW 100million (US$85,000). The insurance certificate can be either a) Cargo Compensation Liability Insurance or b) Licensing Guarantee Insurance. The insurance certificate can be secured with Seoul Guarantee Insurance; | Yes |
| 3. | Colour copies of i) bill of landing (BL) and ii) air waybill (AWB) form and conditions to be issued under ITT Korea (the document can be in either in Korean or English); | Yes |
| 4. | Apostilled declaration letter confirming the company Directors are not i) financially bankrupt and ii) involved to any criminal records; | Yes |
| 5. | Colour copy of Certificate of incorporation issued by the Korea Company Registrar; | Yes |
| 6. | Colour copy of Passport apostilled or legalized, received from each individual company Directors; | Yes |
| 7. | Duly completed and signed business license application form; | Yes |
The insurance certificate can be either a) Cargo Compensation Liability Insurance or b) Licensing Guarantee Insurance. The insurance certificate can be secured with Seoul Guarantee Insurance;
Estimated insurance premium to secure the guarantee insurance is US$150. Following documents are required for the insurance application i) corporate register, ii) shareholder list, and iii) business registration certificate of ITT Korea;
If the paid-up capital of the corporation exceeds KRW 1billion, guarantee insurance (surety bond) is not required;
Other Licensing Considerations
Depending on our Client’s exact business activity, there is a 90% probability that the Korean Government may request our Client to secure additional regulatory permits and business licenses from Korean Government Authorities. Below are some of the relevant, but separate business license:
Local trucking business license
- The name of the license: Trucking Transport Business;
- The legal basis: “Tracking Business Act” (TTBA);
- The regulatory body of the license is the Ministry of Land, Infrastructure and Transport;
Storage services for ISO tank containers
- The name of the license: Logistics Warehouse Business;
- The legal basis: “Development and Management of Logistics Facilities Act” (DMLFA);
- The regulatory body of the license is the Ministry of Land, Infrastructure and Transport;
The license is required for the companies carrying providing storage services with over a certain size of storage facilities. Specifically, the license is required only when the storage facility’s total i) floor area exceeds 1,000 square meters or ii) space area exceeds 4,500 square meters.
However, Logistics Warehouse Business License is strictly limited to the storage of empty ISO containers, and does not permit the storage of dangerous/hazardous chemicals and goods;
