Foreign investors are now choosing Seoul as a new ground for growth. From accessing a strong market to initiatives meant particularly for international investors, this is where you can scale & explore new ideas. Seoul also has specific clusters like Teheran-ro for fintech and Pangyo Techno Valley for R&D.
Of course, everything should start with accurate and clear advice, and that should only come from a reliable team. 에이펙스세무회계 is a trusted name for the initial help, and you can also expect specific support through internal accounting & tax experts. With the team at Apex Tax & Accounting, you don’t have to guess a step or rely on online resources for details.
Choosing the Legal Vehicle
You can consider a subsidiary (FDI entity), which will be regulated under the Foreign Investment Promotion Act (FIPA). If you decide to invest KRW 100 million or more, you will not have trouble opening a bank account and qualifying the company as an FDI company, unlocking tax incentives.
Another choice is a branch office, which will work as an extended arm of the company in your country. Profits can be remitted easily, but your parent company carries 100% of the legal and tax liability for the Seoul office. The third option is a liaison office that can be used for market research, but cannot make revenue.
2026 Tax Details
You will pay a tax rate of 10% (11% including local tax) on the first KRW 200 million in profit. If your profit amount is anywhere between KRW 200M and 20B, the tax rate is 20%. There is also the Venture Business Certification, which can cut down your taxes by 50% for five years.
Payroll & Compliance
Employers here, including foreign companies, are required to pay into the National Pension, Health Insurance, Employment Insurance, and Industrial Accident Insurance. Also, you have to offer severance pay to employees who have been working for more than one year, as this is considered deferred salary here.
Quick Insights from Experts
- Link your Corporate Credit Card to the NTS Hometax portal immediately. Without this, tracking deductible expenses would be a nightmare.
- Only three types of proof are truly audit-proof in Korea, and these are electronic tax invoices, credit card receipts, and cash receipts issued to your business number.
- Foreign business owners can choose a 19% rate on personal income, and this can help sidestep the progressive tiers that can reach 45%.
- Many bank accounts are restricted for a few initial months. Consider taking help from a tax accountant to design a business plan, which can help tackle these limits.
Get Help for Your Launch
If you don’t understand the business setup process here in Seoul, get an accountant & tax expert before the first step. Professional teams can help with the paperwork for the initial setup and ensure your company doesn’t have to deal with errors or penalties. Your accountant becomes a team member for guidance whenever your business moves in a new direction or a tax-saving opportunity arises.