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%
​
3 Ways of Establishing a Business
Liaison Office - business contacts only
Domestic Branch Office - business within the permitted scope
Foreign Invested Company - no restrictions
​
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
​