Expand Business in South Korea
Global Upside helps businesses expand into South Korea by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with South Korean laws and regulations.
The hiring and incorporation processes in South Korea are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in South Korea . We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Located in East Asia, South Korea is a high-tech, service-based economy that is one of the fastest-growing developed nations in the world. Since the 1960s, South Korea has seen stable growth and alleviation in poverty.
- South Korea is known for its remarkable rise from one of the poorest nations in the world to a high-income, developed country.
- South Korea’s major exports consist of electrical equipment, vehicles, petroleum oils, parts, and accessories for vehicles.
- The main import items are petroleum oils, electrical equipment, gas, hydrocarbons, and coal.
A limited liability company (LLC), or Yuhan Hoesa, is the most common form of legal establishment in South Korea. An LLC must appoint at least one investor and one director. The minimum share capital requirement is only $1.
A general partnership, or Hapmyeong Hoesa, is formed by at least two partners who share unlimited liability. Each partner is jointly liable for all debts that are incurred by the establishment.
A limited liability partnership (LLP), or Hapja Hoesa, is a form of establishment that requires at least one partner to subject themselves to unlimited liability and at least one partner to maintain limited liability. The LLP is responsible for paying Korean corporate taxes and cannot be treated as a pass-through entity.
A joint stock company, or Chushik Hoesa, is a standard corporate setup for foreign businesses that establish subsidiaries in South Korea. The liability is restricted to the capital investment by the shareholders.
It takes a minimum of 2 to 4 weeks to incorporate a legal establishment in South Korea.
The following information must be included in all employment agreements:
- Working hours
- Working conditions
The government mandates only one paid holiday:
- May 1: Labor Day
Employers may offer others but are not required to do so.
Accounting standards in South Korea, regulated by the Korean Accounting Standards Board (KASB), follow the International Financial Reporting Standards (IFRS), renamed Korean IFRSs (K-IFRSs). All companies doing business in the country must use either IFRS Standards, as adopted in Korea, or US GAAP.
The Personal Information Protection Act (PIPA) was established to protect personal data and information. The collection and use of personal data and information by IT service providers is regulated under the Act on Promotion of Information and Communication Network Utilization and Information Protection (IT Network Act).
Anti-Bribery & Anti-Corruption Law
Articles 129 to 133 of the Criminal Act cover anti-bribery statutes and establish both bribery in any form as an illegal activity.
1. Bribery of Public Officials
i) Ban from the profession for up to 10 years
ii) Imprisonment for up to 5 years
iii) A monetary fine
iv) Confiscation of all assets resulting from the illegal activity
2. Bribery of Private Employees
i) Imprisonment for up to 5 years
ii) A monetary fine of a minimum of KRW 10 million
iii) Confiscation of all assets resulting from the illegal activity