Establishment & Operation of Foreign-Invested Corporations
YEOHAE Lawfirm: Support for Establishing and Operating Foreign-Invested Corporations
YEOHAE Lawfirm provides more than just document processing services. We offer continuous support to ensure your company can conduct business stably in Korea's unfamiliar legal environment.
Partner-Led Service: The Representative Attorney, with over 10 years of experience in international transactions and corporate advisory, directly supervises all projects.
Global Compliance: We provide precise legal solutions that respond to rapidly changing international situations, such as financial sanctions against Russia and the suspension of the Korea-Russia Tax Treaty.
Business-Centric: Beyond legal accuracy, we prioritize business continuity and profitability.
Corporate Structure Design
Global companies entering Korea must prioritize sophisticated governance design tailored to their business objectives.
A. Corporate Form: JSC vs. LLC
| Category | Joint Stock Company (JSC) | Limited Liability Company (LLC) |
|---|---|---|
| Key Features | Issuance of shares, strict external audits & disclosure | Closed shareholding structure, simplified decision-making |
| Governance | Board of Directors & Auditor required (Strict formal procedures) | Single Director possible, Board not required |
| External Disclosure | Mandatory disclosure of financial statements (Above a certain size) | Almost no disclosure obligations (Advantageous for confidentiality) |
| Funding | Easy to attract external investment (IPO, Bond issuance) | Suitable for structures funded by HQ capital |
| YEOHAE's Pick | Companies planning an IPO in Korea or attracting external investment | 100% Subsidiary of foreign HQ (Chosen by over 80% of foreign companies) |
B. Entry Form: Subsidiary vs. Branch
Choose the optimal form based on your company's purpose for entering Korea and risk tolerance.
Subsidiary: The most recommended form. Protected by the Foreign Investment Promotion Act (FIPA), it is legally separated from the HQ, preventing management risks from transferring to the HQ.
Branch: Generates revenue, but the HQ bears unlimited legal liability (debts, etc.) within Korea.
| Category | Subsidiary | Branch Office |
|---|---|---|
| Legal Status | Domestic Corporation (Independent Legal Entity) | Foreign Corporation (Foreign Entity) |
| Applicable Laws | Foreign Investment Promotion Act (FIPA) & Commercial Act | Foreign Exchange Transactions Act |
| Business Activities | Possible (Revenue generation) | Possible (Revenue generation) |
| HQ Liability | Limited Liability limited to the assets of the Korean entity |
Unlimited HQ fully responsible for debts in Korea |
| Initial Capital | Min. KRW 100 Million recommended | No limit (Operating funds required) |
| Tax | Korean Corporate Tax (Based on global income) | Corporate Tax on income generated in Korea |
| Visa | D-8 (Corporate Investor) Visa | D-7 (Intra-Company Transferee) Visa |
| YEOHAE's View | Recommended for full-scale business & risk separation | Suitable for simple sales network expansion with high risk acceptance |
C. Foreign Investment Requirements (FIPA Compliance)
To receive protection and benefits (guarantee of profit remittance, D-8 Visa) from the Korean government, you must register as a 'Foreign-Invested Enterprise'.
Minimum Capital: KRW 100 Million or more
Shareholding: Ownership of 10% or more of voting shares
Note: Establishing a corporation with less than KRW 100 million implies a simple corporation under the Commercial Act, which entails many restrictions on visa issuance and investment protection.
YEOHAE Corporate Services (Step-by-Step)
We provide systematic legal services tailored to each milestone, from establishment to stabilization.
Phase 1. Market Entry & Incorporation
Legal Review: Advising on optimal corporate form (LLC/JSC) and capital structure design.
FDI Notification: Handling Foreign Direct Investment notification (Bank/KOTRA) and advising on the Foreign Exchange Transactions Act regarding Capital Remittance.
Registration: Court registration of establishment, drafting Articles of Incorporation, business registration with the Tax Office, and registration of Foreign-Invested Enterprise (FIE).
Banking: Support for opening corporate bank accounts (Responding to enhanced KYC/AML).
Phase 2. Business Visa & Immigration
D-8 (Corporate Investor) Visa: Visa processing for executives dispatched to the Korean entity. We attach an attorney's opinion letter proving the 'authenticity of the dispatch order' and 'professionalism,' going beyond simple document processing.
F-3 (Dependent Family): Residence permits and visa processing for accompanying family members.
Phase 3. General Corporate Counsel (Monthly Retainer)
Monthly Retainer Service: Ongoing advice for foreign management unfamiliar with the Korean legal environment.
Drafting minutes for Board of Directors/Shareholders' Meetings and governance management.
Reviewing Korean/English contracts (Employment, Service, NDA).
Compliance with Korean Labor Law and HR advisory.
Management of various regulatory compliance risks.
Phase 4. Executive Relocation
Premium legal service to help C-Level executives and their families focus entirely on life in Korea.
Legal review of residential lease agreements, notarization for international school admission, personal financial transaction advice, etc.
YEOHAE's Competitiveness
"Quality of a large law firm, Agility of a boutique law firm."
Risk Management for High-Net-Worth Individuals: We advise on legal and safe remittance and investment routes for clients from nationalities sensitive to financial sanctions issues, such as Russia and the CIS region. (Providing logic to persuade Bank Compliance teams)
Remote Incorporation: We have a fully equipped remote work process allowing clients to establish and register a corporation without visiting Korea. (Providing guidelines for Apostille/Notarization in the home country)
Communication: Professional counselors provide consultation in the client's language.
Disclaimer: The information on this webpage is for general guidance and should not be construed as legal advice for specific cases. Specific advice is provided after a formal engagement agreement.
Get a free consultation with our professional counselor
Tel: +82-2-537-2370
USA, CANADA: 240-348-9181
Business hours: Mon–Fri, 9:30–18:00
Email: info@leesunsin.com
한국어, English, 中文
русский
Tiếng Việt
日本語, Thai
Excellent Lawyer Award from Korean Bar Association
Pyoung-ho Kim, Representative Attorney, received the Excellent Lawyer Award from Korean Bar Association recognized his passion and devotion to his cases and clients. We provide specialized lawyer services for all foreigners in Korea.
Managing Partner Kim, Pyoung-ho
2011: Passed the Judicial Examination
2011: Review Committee Member for the 1st Attorney Examination, Ministry of Justice
2011: Review Committee Member for the 54th Judicial Examination, Ministry of Justice
2013: Civil Mediator, Seoul Central District Court
2013: Acting Prosecutor, Jeonju District Prosecutors' Office
2013: Professional Training, Office of National Assembly Member Lee Chun-seok
2013: Researched U.S. Government Procurement Laws, KOTRA Washington, D.C.
2015: Member, International Committee of the Korean Bar Association
2015: Member, School Violence Countermeasures Committee, Seoul Seo-i Elementary School
2017: Legal Advisor, Korea Paragliding Association
2017: Member, Disciplinary Committee of the Seoul Bar Association
2017: Adult Guardian, Seoul Family Court
2020: Delegate, The Korean Society of Law
2020: Member, Regulation Deliberation Committee, Seoul Entrepreneurs' Association
2020: Member, Committee for the Protection of Teachers' Rights, Seoul Seo-i Elementary School
2021: Young Lawyer Award, Korean Bar Association
2021: Excellent Lawyer Award, Korean Bar Association
2023: Member, Administrative Disposition Deliberation Committee, Ministry of Land, Infrastructure and Transport
Education: B.S. in Physics, Yonsei University
Languages: Korean, English
Certifications and Awards
Parties to the litigation we conducted