How to Incorporate a Company in Korea as a Foreigner: Step-by-Step Guide

1. ·Art. 4 Para. 1 — Foreigners may conduct foreign investment activities in Korea without restriction, unless a special provision of law applies.
2. ·Art. 4 Para. 2 — Foreign investment may only be restricted in cases that threaten national security/public order, harm public health or the environment, or violate Korean law.
3. ·Art. 5 Para. 1 — A foreigner intending to make a foreign investment must declare this to the Minister of Trade, Industry and Energy IN ADVANCE, in the manner prescribed by Ministerial Ordinance.
4. ·Art. 5 Para. 2 — Exceptionally, if the investment involves acquiring existing shares of certain listed companies, or using a company's retained earnings/revaluation reserves, declaration may be made within 60 days after acquisition.
5. ·Art. 6 Para. 1 — Investment in defence-industry enterprises (as defined by Presidential Decree) requires advance APPROVAL (허가) from the Minister — not merely a declaration — and changes to the approved investment ratio also require approval.
6. ·Art. 3 Para. 2 — Foreign investors and foreign-invested enterprises receive the same treatment as Korean nationals/corporations regarding business operations (national treatment principle), unless a special law provides otherwise.
7. ·Art. 3 Para. 1 — Repatriation (overseas remittance) of profits, sale proceeds, and loan principal/fees arising from the foreign investment is guaranteed in accordance with the declared or approved content at the time of remittance.

1. ·You are a foreign national or foreign entity intending to invest in or establish a corporation in Korea.
2. ·Your intended business sector is not in a restricted category under Art. 4 Para. 2 (national security, public health/environment, legal compliance).
3. ·If investing in a defence-industry enterprise defined by Presidential Decree, you must obtain advance ministerial approval (Art. 6).
4. ·Foreign investment declaration must be completed before the investment is made, in the manner set by the Minister's ordinance (Art. 5 Para. 1).
5. ·For post-acquisition declaration (60-day window), the investment must fall within the specific categories listed in Art. 5 Para. 2.

1. 1Step 1: Check whether your business sector is restricted or prohibited under Art. 4 Para. 2 of the Foreign Investment Promotion Act. Consult KOTRA's Invest Korea Center for a free preliminary review.
2. 2Step 2: Determine whether your investment requires a simple declaration (신고) or advance approval (허가 — defence-industry enterprises under Art. 6).
3. 3Step 3: File the Foreign Investment Declaration (외국인투자 신고) with the Ministry of Trade, Industry and Energy BEFORE transferring funds. (Use the Invest Korea one-stop service for assistance.)
4. 4Step 4: Remit the investment funds from overseas through a designated foreign exchange bank in accordance with the declared content (Art. 3 Para. 1).
5. 5Step 5: Prepare corporate articles of incorporation and other founding documents, then complete notarization if required.
6. 6Step 6: Register the corporation at the competent district court registry office (법원 등기소) — this is the legal moment of incorporation.
7. 7Step 7: Register for business with the local tax office (세무서) under the National Tax Service to obtain a business registration number.
8. 8Step 8: Apply for the D-8 (Corporate Investment) visa or other relevant visa through the Korea Immigration Service if you need to reside in Korea to operate the business.

① Ministry of Trade, Industry and Energy (산업통상부) — for foreign investment declaration/approval. ② KOTRA (Korea Trade-Investment Promotion Agency) — Invest Korea Center offers one-stop support for foreigners. ③ District Court Registry Office (법원 등기소) — for corporate registration. ④ National Tax Service (국세청) — for business registration number after incorporation.

1. ·Transferring investment funds BEFORE completing the foreign investment declaration — this reverses the legally required sequence under Art. 5 Para. 1.
2. ·Assuming all business sectors are freely open — certain sectors are restricted or require special review under Art. 4 Para. 2; always verify your specific industry code (KSIC).
3. ·Confusing 'declaration' (신고) with 'approval' (허가) — defence-industry enterprises require full ministerial approval, not just a declaration (Art. 6).
4. ·Neglecting to register as a business with the tax office (세무서) after corporate registration — both steps are separately required.
5. ·Not accounting for the national treatment principle (Art. 3 Para. 2): foreigners generally have the same rights AND obligations as Korean companies, including tax and labour law compliance.
6. ·Skipping professional legal or administrative help — Korean corporate registration procedures have strict formality requirements and errors can delay incorporation significantly.