Business in South Korea

Overview

Population:                         51.8 million (2020)

GDP:                                       US$ 1.631 Trillion (2020)

Inflation Rate:                   2.6% (Aug 2021)

Unemployment Rate:    2.8% (August 2021)

Minimum Wage:               KRW8,720/hour

Personal Income Tax:   45%

Corporate Tax:                 25%

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3 Ways of Establishing a Business

Liaison Office - business contacts only

Domestic Branch Office - business within the permitted scope

Foreign Invested Company - no restrictions

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Major Taxes Related to FDI

National Tax

• Corporate tax

• VAT

• Wage and salary income tax

• Capital gains tax

• Securities transaction tax

• Customs duty

Local Tax

• Acquisition tax

• Registration and license tax

• Property tax

• Automobile tax

• Local income tax

• Local education tax

Incentives - Tax Reductions and Exemptions

• General Investment and Investment in Facilities for Commercialization of new growth technologies

• Acquisition Tax and Property Tax

• Custom Duty, Individual Consumption Tax and Value added Tax

• Business cities, special zones for R&D, or other special industrial zones

• Companies increasing jobs

• Startups in employment or industrial crisis areas

• Startup SMEs and SMEs

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