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HK Business Registration: Home

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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