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Asian tiger economy with advanced tech sector
Region
ASIA PACIFIC
Corporate Tax
10-25%
Setup Time
1 weeks
Currency
KRW
South Korea, a highly developed Asian economy, combines manufacturing excellence with technological innovation. The country's company registration framework supports business setup in a sophisticated but relationship-driven environment.
With a population of 52 million, South Korea offers modern living with distinct cultural character. Korean is the official language, with English limited outside business contexts. The climate features hot summers and cold winters.
Healthcare is excellent through national health insurance. Safety is very good. The cost of living is moderate, with Seoul expensive.
The K-culture global influence, technology, and food scene create distinctive appeal.
Corporate tax rates range from 9% to 24% based on income level. Personal income tax reaches 45%. VAT applies at 10%.
The South Korean won is freely traded. The economy features major conglomerates (chaebols) alongside vibrant startup ecosystem. Manufacturing excellence spans semiconductors, automobiles, and electronics.
Company registration through the court registry is established. The Yuhan Hoesa (limited company) is common. Foreign ownership is permitted in most sectors.
Company formation takes approximately 2-3 weeks. Minimum capital varies by structure. At least one director is required. Annual compliance includes audited accounts for larger companies.
The Financial Services Commission registers virtual asset service providers. Korea has significant crypto market and regulatory development, including real-name verification requirements for exchanges.
Gambling is largely prohibited for Korean citizens, with limited exceptions. Foreigner-only casinos operate. Online gambling licensing does not exist for operators targeting Korean residents.
Korean language is essential for many market engagements. The business culture emphasizes relationships. Competition is intense in most sectors.
Banking access is available through Korean and international banks. Professional services are sophisticated.
South Korea suits technology companies, manufacturing partnerships, and businesses committed to Korean market for their business setup.
Local: Yuhan Hoesa
Local: Chusik Hoesa
Local: Branch
| Corporate Tax Rate | 10-25% |
| Personal Income Tax Rate | 45% |
| VAT / Sales Tax | 10% |
| Capital Gains Tax | 22% |
| Withholding Tax | 20% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | HIGH |
| Financial Privacy | MEDIUM |
| Currency Controls | SOME |
| Local Bank Account Required | Yes |
| Non-Resident Bank Account Allowed | No |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | Yes |
| MLRO Required | Yes |
| Compliance Officer Required | Yes |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF Travel Rule - KRW 1,000,000 threshold for VASP-to-VASP transfers |
| Business Plan Required | Comprehensive business plan required for KoFIU registration |
| Personnel Required | Representative director, AML compliance officer, IT security personnel |
| Insurance Required | Yes |
| Insurance Details | Liability insurance or reserves required - minimum KRW 500 million for custodians, KRW 3 billion for KRW-fiat exchanges; 5% of hot wallet holdings |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | KoFIU maintains non-public register of registered VASPs |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | No |
| Compliance Audit Mandatory | No |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Korea Financial Intelligence Unit (KoFIU), Financial Services Commission (FSC) |
| Licensing Fee | $0 |
| Licensing Fee Details | No explicit licensing fee - VASP registration is a reporting requirement. ISMS certification costs vary (KRW 10-50 million typical) |
| Permitted Business Models | Exchange (KRW-crypto, crypto-crypto), Custody, Wallet services, Transfer services, Brokerage |
| Permitted Activities | Trading, Custody, Transfer, Exchange between virtual assets and KRW |
| Restricted Activities | Crypto derivatives prohibited for domestic exchanges, corporate/institutional trading on KRW exchanges restricted until 2026 |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Comprehensive business plan required for casino license under Tourism Promotion Act |
| Personnel Required | Licensed management personnel, security staff, compliance officers |
| Insurance Required | Yes |
| Insurance Details | Comprehensive liability insurance required |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 1 |
| Min. Directors | 3 |
| Shareholder/Director Same Person | No |
| Registry Public | No |
| Registry Access | Ministry of Culture, Sports and Tourism maintains license records |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | National Gambling Control Commission, Ministry of Culture Sports and Tourism, Korean Tourism Organization |
| Licensing Fee Details | Licensing fees determined case-by-case; significant contributions to tourism promotion funds required |
| Permitted Business Models | Foreigner-only casinos |
| Permitted Activities | Land-based casino operations for foreigners only (except Kangwon Land for Koreans) |
| Restricted Activities | Online gambling prohibited; Korean citizens prohibited from most gambling; sports betting limited to state-operated Sports Toto |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $5,000,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant - Korea is a founding FATF member since 1990 |
| Business Plan Required | Comprehensive business plan with financial projections, risk management, governance structure required per FSC regulations |
| Personnel Required | CEO, CFO, Compliance Officer, AML Officer, Internal Auditor - fit and proper requirements apply |
| Insurance Required | Yes |
| Insurance Details | Deposit insurance required for banks; professional indemnity insurance for other financial institutions |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 1 |
| Min. Directors | 3 |
| Shareholder/Director Same Person | No |
| Registry Public | Yes |
| Registry Access | FSC and FSS maintain public registers of authorized financial institutions |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Financial Services Commission (FSC), Financial Supervisory Service (FSS) |
| Licensing Fee Details | Application fees vary by license type. Electronic Financial Business registration requires KRW 5 billion minimum capital for EMI activities; KRW 3 billion for payment services |
| Permitted Business Models | Banking, Insurance, Securities, Electronic Financial Business (EMI/PI equivalent) |
| Permitted Activities | E-money issuance, payment services, remittance, prepaid cards, mobile payments |
| Restricted Activities | Foreign ownership limited in banking sector; significant ownership (>10%) requires FSC approval; local presence and Korean directors required |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |