Type of Entities in Korean for foreign investment:
According to "Foreign Investment Promotion Law" of South Korea, foreigners are free to invest in Korea except for the area specified by law. They can establishrepresentative offices, subsidiaries, limited liability companies through wholly-owned, joint venture, cooperation, merger, etc.
Departmentsfor registration of Korean Companies:
Korea Trade-Investment Promotion Agency and the Korean Local Court registration (when establishing Legal Person) and the local Inland Revenue Department.
Procedures for registration of Korean Companies:
Natural person when establishing Non-legal Person entity, no need to undertake a legal Person registration.
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For investment in South Korean, you need thoughtfully understand Korean law,investment, Korean labour union, Korean taxation, Korean culture and preferential measures for foreign investment before making the right investment decisions, especially taking into account on the role of labor unions in Korea. Korean Labour Unionis the representative of labour to negotiate with employers for wages, benefits and working conditions, to a large extent to influence corporate decision-making. In addition, Korean law deal with commercial corruption seriously, so foreign enterprises must strictly comply with the relevant regulations.
In Korea, "Anti-Competition and Fair Trade Act" prohibit monopolistic business practices (such as price alliance), insider trading and other unfair trade practices. If convicted, severe punishment will be resulted. So, foreigner if invest in Korea, need to pay a particular attention on that. For details, please refer to the Act (Chapter V, Article 23, paragraph 7)