Ⅰ Types of Business Entities that Foreigners can Establish

Foreigners can do business in Korea mostly through the following four methods: (1) establishing a local corporation or investing in an already established corporation; (2) opening a private business; (3) establishing a branch under the procedures prescribed by the Foreign Exchange Transaction Act; and (4) establishing a liaison office that does not generate profit in Korea.

1. Local Corporation

■ Provisions of the Foreign Investment Promotion Act and the Commercial Act apply to investments made through local
corporations established by a foreigner or a foreign company, and the established corporation shall be treated equally as
domestic corporations. However, to be recognized as a foreigninvested company under the Foreign Investment Promotion Act, a foreigner should invest at least KRW 100 million to establish a local corporation. To invest in an already established company, a

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