Success tips when doing business in South Korea in 2023
- In Korea, all government transactions are in Korean. Therefore, Healy Consultants advises our Clients to hire a bilingual manager to settle their government affairs efficiently and effectively during South Korea business setup;
- We encourage our Clients to consistently use and sign contracts of service with their suppliers and counterparties while establishing a company in South Korea;
- Your joint venture partner or South Korean shareholder must not merely be a nominee for the sake of meeting the rules of foreign company incorporation. You should choose a partner that actually brings a lot to the table, including knowledge that would help you out in South Korea company formation;
- Due to Confucian ethics in Korea, there is great respect for authority and seniority. Therefore, in order to be taken seriously, a high ranking representative should be present in all important meetings with South Korean suppliers and Clients;
- South Korean employees expect their employers to take holistic interest in their wellbeing. This includes an interest in their personal life;
- Koreans don’t take loss of face and shame lightly. Avoid being impatient, and putting a Korean in a position where he / she might suffer a loss of face;
- To optimize the success of your new business venture starting a company in South Korea, Healy Consultants recommends your firm i) complete a feasibility study ii) prepare a detailed business plan iii) communicate with the South Korea inland revenue department iv) speak to your local South Korea embassy and v) communicate with Healy Consultants Clients who successfully launched their business in South Korea;
- An essential factor in starting a business in South Korea is to thoroughly research the business sector you are planning to invest in. Healy Consultants recommends our Client prepare a detailed business plan including an extensive market study and evaluation of competitors;
- Following South Korea business incorporation, annual audited financial statements and a tax return must be submitted to the South Korean authorities. To save time and money, it is advisable that you hire Healy Consultants to settle this annual statutory obligation efficiently and effectively.
Interesting facts about South Korea
- South Korea is a democratic state that is governed by a president and a prime minister;
- The population of South Korea in 2013 was 50 million. The population is composed of 99.9% Korean and 0.1% Chinese;
- South Korea’s economy is high-tech and industrialized. Its main industries include electronics, telecommunications, auto production, steel, shipbuilding, and chemical production. Some of South Korea’s largest companies include Hyundai, LG, and Samsung;
- All males are constitutionally required to serve in the military, typically for a period of two years. South Korea has an extensive military that includes air force, navy, army, and marines;
- Taekwondo is South Korea’s national sport. Many Korean kids learn taekwondo as a routine part of their education;
- South Korea is the only country with complete 100Mb broadband internet connection everywhere;
- The number of foreign-invested companies in Korea has increased exponentially from 2,000 in 1997 to 14,000 in 2010. They now account for 13 percent of Korean GDP, 12 percent of all exports and 6 percent of employment in the manufacturing sector.
Frequently asked questions
Am I required to visit South Korea to incorporate a company there?No. Healy Consultants can legally incorporate your South Korean company without you needing to travel.
What is the minimum number of directors required for a South Korean company?Under statutory regulations, South Korea Limited Liability Company (LLC) requires a minimum of one director, with no restriction on nationality.
What is the minimum number of shareholders required for a South Korean company?A minimum of one shareholder is required for a Yuhan Hoesa (limited liability company).
Can my company be 100% foreign-owned?Yes.
Is a South Korean company required to submit an annual tax return and/or financial statements?All South Korean companies are required to submit an annual tax return to the National Tax Service of South Korea and maintain accounts.