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Complete Guide to Establishing a Korean Company in South Korea as a US Business
For U.S. Citizens with 1,000,000 KRW Minimum Capital - Updated January 2026
Executive Summary
This comprehensive guide provides U.S. citizens with a complete roadmap to establish a Yuhan Hoesa (유한회사), or Limited Liability Company, in South Korea with a minimum capital investment of 1,000,000 KRW (approximately $750-$800 USD). The guide is specifically designed for entrepreneurs who will not be residing in Korea and will execute all local operations through a dedicated Korean Liaison agent via Power of Attorney.
No Visa Required
You can establish and operate a Korean company without needing to relocate or obtain a D-8 business visa
Low Capital Entry
1M KRW is one of the lowest minimum investments possible for corporate establishment
Limited Liability Protection
Your personal assets are protected from business liabilities
Simplified Structure
Yuhan Hoesa requires fewer compliance obligations than a Jusik Hoesa (stock company)
Local Representation
Your Korean Liaison handles all ground operations, eliminating the need for multiple trips to Korea
Understanding Key Korean Business Terms
Zero-Knowledge Primer
Before diving into the process, let's demystify the essential Korean business concepts you'll encounter. Think of these as the "building blocks" of Korean corporate law, explained in plain American terms.
Corporate Seal (In-gam / 인감)
American Equivalent: Think of it as a combination of your corporate signature and notary seal rolled into one physical stamp.
What It Is: In Korea, instead of signing documents with a pen, companies use an official carved seal (similar to a rubber stamp, but made of stone or wood). When this seal is pressed onto important documents with red ink, it serves as the company's legal signature. This isn't decorative—it's legally binding.
Why It Matters: The corporate seal must be registered with the Korean Court Registry. Once registered, any document bearing this seal impression is legally considered to be executed by your company. Your Liaison will have this seal made and will use it (with your Power of Attorney) to sign contracts, open bank accounts, and file government documents on behalf of your company.
Security Note: Because the seal IS the signature, it must be kept secure. Your Liaison will maintain custody of it in Korea and will only use it for authorized company business as outlined in your Power of Attorney.
Business Registration Certificate (Sa-eop-ja-deung-rok-jeung / 사업자등록증)
American Equivalent: Similar to your EIN (Employer Identification Number) letter from the IRS, but in certificate form that you'll use everywhere.
What It Is: This is an official certificate issued by the Korean National Tax Service (NTS) after your company is incorporated. It contains your company's unique Business Registration Number (BRN), which is like Korea's version of a Tax ID Number.
Why It Matters: You cannot operate legally in Korea without this certificate. It's required to:
  • Open a corporate bank account (after initial capital deposit)
  • Issue or receive tax invoices
  • Sign commercial leases
  • Hire employees
  • Import/export goods
  • Apply for business permits or licenses
The Process: Your Liaison will obtain this certificate from the local tax office within 20 days after court registration. You'll receive a digital copy, and your Liaison will keep the original in Korea for operational purposes.
Corporate Register (Deung-gi-bu Deung-bon / 등기부등본)
American Equivalent: Similar to your Certificate of Incorporation combined with your company's public record at the Secretary of State.
What It Is: This is the official government record of your company's existence, maintained by the Court Registry. It contains all vital information about your company: name, address, capital amount, directors, shareholders, and the corporate seal impression.
Why It Matters: This document proves your company legally exists. You'll need certified copies when opening bank accounts, applying for permits, or entering into major contracts. Anyone can request a copy of any Korean company's register for a small fee—it's public information.
Apostille
What It Is: An apostille is an international certification that authenticates the origin of a public document (like a notarization). The United States and South Korea are both members of the Hague Apostille Convention, which means U.S. documents with apostilles are automatically recognized as valid in Korea without additional embassy authentication.
How to Get It: After having documents notarized in the U.S., you send them to your state's Secretary of State office (or U.S. Department of State for federal documents) to receive an apostille certificate attached to your document. This typically costs $10-$25 per document and takes 1-3 weeks.
Which Documents Need It: For Korean company registration, you'll need apostilles on: Power of Attorney, passport copy certification, and Articles of Incorporation (if prepared in the U.S.).
Understanding the 1,000,000 KRW Investment

Important Distinction: An investment of 1,000,000 KRW (approximately $750-$800) is below the 100,000,000 KRW threshold defined by the Foreign Investment Promotion Act (FIPA).
What This Means:
  • You CAN establish a fully legal Korean company
  • You CAN own 100% of the shares
  • You CANNOT register it as an official "Foreign Direct Investment" (FDI) under FIPA
  • You WILL NOT receive FDI tax benefits or government incentives
  • You WILL NOT qualify for a D-8 business visa based on this investment alone
Legal Framework:
Instead of following the FIPA registration process, your investment falls under the Foreign Exchange Transaction Act. This requires filing a "Stock Acquisition Notification" rather than an "FDI Notification"—your Liaison will handle this distinction.
Why This Works:
Many foreign entrepreneurs start with this minimal investment to test the Korean market, establish relationships, and build operations before scaling up to the 100M KRW threshold for FDI benefits.
Process Overview: The Four Critical Phases
The entire process from decision to operational company typically takes 4-6 weeks and can be broken down into four distinct phases. Here's what to expect:
01
Decision & Documentation
1-2 weeks
Choose company name, prepare U.S. documents, obtain notarization and apostille
02
Capital Transfer
3-5 days
Wire 1M KRW to Korea, complete stock acquisition notification
03
Registration Phase
1-2 weeks
Liaison files with Court Registry, obtains corporate certificate
04
Tax & Launch
4-5 days
Tax office registration, business certificate, open corporate bank account

Critical Success Factor: The success of this process hinges on perfect documentation from the U.S. side and precise execution from your Korean Liaison. Any errors in notarization, apostille, or Power of Attorney language can delay the process by 2-4 weeks. Follow each step exactly as outlined.
Phase 1: Decision & Documentation
Timeline: 1-2 weeks
Est. Cost: $150-$300
Step 1.1: Choose Your Company Name (The Korean Way)
Understanding Korean Company Naming Rules
Unlike in the U.S. where you can name your company "Apple Inc." or "Microsoft Corporation," Korean law requires specific naming conventions:
Legal Requirement: Your company name MUST:
  • Be written in Korean characters (Hangul)
  • End with "유한회사" (Yuhan Hoesa) - which means "Limited Company"
  • Not conflict with existing registered company names in Korea
  • Not include words that suggest government affiliation or regulated industries without permits
Option A: Transliterate Your U.S. Name
Most Common
If your U.S. business is "Global Tech Solutions LLC," you could use:
글로벌테크솔루션스 유한회사
(Geullobeol Tekeu Sollusyeonseu Yuhan Hoesa)
Advantage: Maintains brand consistency across jurisdictions
Option B: Create a New Korean Name
Choose a meaningful Korean name that resonates locally:
혁신솔루션 유한회사
(Hyeoksin Sollusyeon Yuhan Hoesa - "Innovation Solutions LLC")
Advantage: May have better market appeal to Korean customers
Option C: English + Korean Hybrid
Some companies use English names in Korean script:
ABC코리아 유한회사
(ABC Korea Yuhan Hoesa)
Advantage: Clearly identifies as foreign subsidiary while being Korean-legal

Pro Tip: Work with your Liaison during the name selection phase. They can advise on names that sound natural in Korean and check availability in real-time. This prevents delays later when your documents are already apostilled.
Step 1.2: Draft the Articles of Incorporation (Jeong-gwan / 정관)
What Are Articles of Incorporation?
The Articles of Incorporation are your company's "constitution"—the foundational document that defines how your company operates, who has authority, and what business activities you can conduct. In Korea, this document is called the Jeong-gwan (정관).
Required Contents Under Korean Commercial Code:
  1. Company Name: Full name in Korean including "유한회사"
  1. Purpose of Business: Specific activities the company will engage in (can be broad, e.g., "import/export of consumer goods, e-commerce, consulting services")
  1. Registered Office Address: Must be a physical address in Korea (your Liaison can provide a service office or virtual office address)
  1. Total Authorized Capital: 1,000,000 KRW
  1. Par Value Per Share: Typically 5,000 or 10,000 KRW per share
  • Example: 200 shares × 5,000 KRW = 1,000,000 KRW total
  1. Number and Names of Directors: Minimum one director (you, as the U.S. shareholder)
  1. Shareholder Information: Your name, nationality, passport number, and U.S. address
  1. Fiscal Year End: Most Korean companies use December 31
  1. Method of Public Notice: Typically through company website or official gazette
Option A: Your Korean Liaison Drafts in Korean (Recommended)
Most efficient approach: Your Liaison prepares the Articles in Korean using standard templates that comply with Korean law. You provide the key information (company name, your personal details, business purpose), and they draft the full document.
Advantage: Ensures perfect compliance with Korean legal standards and reduces translation issues.
Option B: You Draft in English, Then Translate (Less Common)
If you prefer to review an English version first, your Liaison can provide an English template, you review and approve, then it gets professionally translated to Korean.
Disadvantage: Adds 3-5 days to the timeline and translation costs ($100-200).
What You Need to Provide to Your Liaison:
  • Chosen company name (in Korean, as confirmed available)
  • Description of business activities in plain English (e.g., "online retail sales," "software development," "consulting")
  • Your full legal name as it appears on your passport
  • Your passport number and U.S. residential address
  • Confirmation of capital structure (e.g., "200 shares at 5,000 KRW each")
  • Preferred fiscal year end (typically December 31)
Step 1.3: Prepare the Power of Attorney (POA)
Why the Power of Attorney Is Mission-Critical
Since you won't be physically present in Korea, the Power of Attorney (POA) is the legal mechanism that authorizes your Korean Liaison to act on your behalf. Without a properly executed POA, your Liaison cannot:
  • File incorporation documents with the Court Registry
  • Use the corporate seal on official documents
  • Register the company with the tax office
  • Open corporate bank accounts
  • Sign leases or contracts on behalf of the company
What the POA Must Include:
1. Grantor Information (You):
  • Full legal name exactly as it appears on your passport
  • Date of birth
  • Passport number
  • U.S. residential address
  • U.S. phone number and email address
2. Agent Information (Your Korean Liaison):
  • Full legal name
  • Korean ID number or Foreigner Registration Number
  • Korean address
  • Korean phone number
3. Specific Powers Granted (Be Explicit):
  • "To prepare, file, and amend Articles of Incorporation for [Company Name]"
  • "To register the company with the District Court Registry Office"
  • "To apply for and use the corporate seal (In-gam) on all corporate documents"
  • "To register the company with the National Tax Service and obtain a Business Registration Certificate"
  • "To open and maintain corporate bank accounts"
  • "To file Foreign Exchange Transaction notifications with designated banks"
  • "To sign lease agreements for the registered office address"
  • "To represent the company in all matters related to its establishment and initial operations"
4. Duration:
Typically valid for 1-2 years, or "until all incorporation procedures are completed." You can limit or extend this as needed.
5. Notarization and Apostille Requirements:
The POA must be signed in front of a U.S. notary public, then apostilled by your state's Secretary of State (or U.S. Department of State for federal documents).

Common POA Mistakes That Cause Delays
  • Vague Language: "To act on my behalf in Korea" is too broad and may be rejected. Use specific powers as listed above.
  • Name Discrepancies: If your passport says "Robert J. Smith" but you sign as "Bob Smith," the Korean registry will reject it.
  • Missing Apostille: A notarized POA without apostille is invalid in Korea.
  • Expired Notary Commission: Verify your notary's commission is current when signing.
How to Obtain Notarization and Apostille in the U.S.:
Day 1-2: Draft the POA
Your Liaison should provide you with a template POA in English that complies with Korean requirements. Review it carefully, fill in your information, but DO NOT sign it yet.
Day 3: Visit a Notary Public
Find a notary in your area (banks, UPS stores, law offices typically offer notary services for $5-15). Bring your passport as ID. Sign the POA in front of the notary. The notary will stamp and sign the document, certifying your signature.
Day 4-14: Obtain Apostille
Send the notarized POA to your state's Secretary of State office (or U.S. Department of State in Washington D.C. for federal apostilles). Most states charge $10-25 per document. Processing time varies:
  • Standard processing: 7-14 days
  • Expedited processing: 1-3 days (additional $50-100 fee)
  • Some states offer same-day service if you appear in person

Pro Tip: Use a professional apostille service like Apostille Express or similar companies in your state. For $100-150, they'll handle the entire notary + apostille process in 3-5 business days, saving you weeks of mailing back and forth.
Step 1.4: Prepare Additional U.S. Documents
Document Checklist: Your "U.S. Package"
In addition to the Power of Attorney, you need to prepare and apostille the following documents:
1. Certified Copy of Your Passport
What It Is: A notarized copy of your passport photo page that proves your identity.
How to Prepare:
  • Make a clear photocopy of your passport photo page (the page with your photo, name, and passport number)
  • Take the original passport and photocopy to a notary public
  • The notary will compare the copy to the original and certify it as a "true copy"
  • Send the notarized copy for apostille
Korean Requirement: The passport must be valid for at least 6 months beyond the date of company registration.
2. Proof of U.S. Residence
What It Is: Official documentation proving your residential address in the United States.
Acceptable Documents:
  • Recent utility bill (within last 3 months)
  • Bank statement showing your address
  • Lease agreement or property deed
  • Government-issued ID with address (driver's license)
Preparation: Original document or notarized copy, then apostilled. If using a utility bill, have the notary certify it as authentic.
3. Articles of Incorporation (If Prepared in U.S.)
Note: This is only needed if you drafted the Articles yourself in the U.S. If your Korean Liaison is drafting them directly in Korean (recommended), you can skip this.
If Using U.S.-Drafted Articles:
  • Must be notarized as your approved company charter
  • Must be apostilled
  • Must be professionally translated to Korean by a certified translator in Korea
  • Translation adds $200-400 and 5-7 days to the timeline
Translation Requirements
All English documents must be translated to Korean by a certified translator before filing with the Korean Court Registry. Your Liaison will arrange this once they receive your apostilled documents. Translation typically costs $30-50 per page and takes 2-3 business days.
Step 1.5: Package and Send Documents to Your Korean Liaison
Final U.S. Package Checklist
Once all documents are notarized and apostilled, you'll send the following package to your Korean Liaison via international courier (FedEx, DHL, or UPS):
  • Power of Attorney - Notarized and apostilled original
  • Certified Passport Copy - Notarized and apostilled
  • Proof of U.S. Residence - Notarized and apostilled
  • Articles of Incorporation (if prepared in U.S.) - Notarized and apostilled
  • Digital Copies - Scan all documents and email PDFs to your Liaison for preliminary review
Shipping Recommendations
  • Service: Use FedEx International Priority or DHL Express (2-3 day delivery to Korea)
  • Cost: Approximately $50-80 for documents
  • Tracking: Ensure the package includes tracking and signature confirmation
  • Customs: Declare as "business documents - no commercial value" to avoid customs delays
  • Recipient: Your Liaison's Korean business address

Phase 1 Complete!
Once your Liaison confirms receipt of all apostilled documents, you've successfully completed Phase 1. The ball is now in Korea for the next steps. Your primary responsibility shifts to transferring the investment capital.
Phase 2: Capital Transfer & Foreign Exchange Notification
Timeline: 3-5 days
Transfer Fees: $15-50
Step 2.1: Understanding the Legal Path for Capital Transfer
Why This Step Is Different for Foreign Investors
When a Korean citizen establishes a company, they simply deposit capital into a bank account. As a foreign investor, you must navigate South Korea's foreign exchange regulations, even for small amounts like 1,000,000 KRW.
The Two-Track System: FDI vs. Stock Acquisition
Track 1: Foreign Direct Investment (FDI) under FIPA
  • Applies to investments of 100,000,000 KRW or more
  • Requires advance FDI notification to KOTRA or designated bank
  • Investor receives special tax benefits and visa eligibility
  • Company registered as "Foreign-Invested Company" with government incentives
Track 2: Stock Acquisition Notification under Foreign Exchange Transaction Act (YOUR PATH)
  • Applies to investments below 100,000,000 KRW
  • Requires "Stock Acquisition Notification" (Form 7-6) to a foreign exchange bank
  • No special tax benefits or FDI registration
  • Company is a regular Korean corporation that happens to have a foreign shareholder
  • Simpler process, but no government perks

Critical Timing Rule
You CANNOT remit the 1,000,000 KRW before filing the Stock Acquisition Notification. The notification must be filed first (or simultaneously with the transfer), otherwise the Korean bank may reject the incoming funds or classify them incorrectly, causing major complications.
Step 2.2: Opening a Temporary Capital Deposit Account
The Two-Account System
Korean company formation uses a two-step banking process:
1
1. Temporary Capital Deposit Account (설립등기용 잔액증명계좌)
  • Purpose: A special escrow-like account opened before company registration
  • Function: Holds the 1,000,000 KRW investment capital to prove to the Court Registry that you have the funds to establish the company
  • Restrictions: Funds are "frozen" until the company is officially registered
  • Duration: Temporary (typically 2-4 weeks until registration is complete)
2
2. Permanent Corporate Bank Account (법인계좌)
  • Purpose: The company's actual operating bank account
  • When Opened: After company registration is complete and Business Registration Certificate is obtained
  • Function: Once opened, the frozen funds from the temporary account are transferred here for company use
Opening the Temporary Account: Your Liaison's Role
Your Korean Liaison will handle this process. Here's what happens behind the scenes:
01
Your Liaison visits a Foreign Exchange Bank
Common banks: Shinhan Bank, Woori Bank, KEB Hana Bank, or IBK (Industrial Bank of Korea). Not all banks handle foreign investment accounts; your Liaison will choose one that does.
02
Liaison presents required documents
  • Your apostilled Power of Attorney (proving they can act on your behalf)
  • Draft Articles of Incorporation (showing company details and capital amount)
  • Your apostilled passport copy
  • Liaison's own Korean ID
03
Bank opens temporary account in the "company-to-be-established" name
Account name format: "[Company Name] 설립등기용" (For Registration of [Company Name])
04
Bank provides account details
Your Liaison receives the account number and bank's SWIFT code, which they send to you for the wire transfer.
Step 2.3: Filing Stock Acquisition Notification (Form 7-6)
What Is Form 7-6?
Form 7-6 (officially: "Notification of Stock Acquisition by Non-Resident") is the Korean government's way of tracking foreign investment flows, even small ones. It's filed with the same foreign exchange bank where the temporary account was opened.
Information Required on Form 7-6:
  • Investor Details: Your name, nationality (USA), passport number, U.S. address
  • Company Details: Proposed company name, business purpose, registered address in Korea
  • Investment Amount: 1,000,000 KRW
  • Number of Shares: Total shares you're acquiring (e.g., 200 shares)
  • Source of Funds: "Foreign remittance from USA"
  • Purpose: "New incorporation of limited company"
Filing Process (Your Liaison Handles This):
Liaison completes Form 7-6 in Korean
Most banks now accept electronic submission through their foreign exchange portals
Bank reviews and accepts notification
Typically same-day or next-day approval if all information is correct
Bank issues "Stock Acquisition Notification Certificate"
This official receipt proves you've notified the Korean government of your investment
Liaison provides you with wire transfer instructions
Now that notification is filed, you can remit the funds
Step 2.4: Wire Transfer from the U.S. to Korea
Preparing Your International Wire Transfer
Once your Liaison confirms Form 7-6 is filed and provides the temporary account details, you'll initiate a wire transfer from your U.S. bank account.
Information You'll Need for the Wire Transfer:
  • Beneficiary Bank Name: e.g., "Shinhan Bank, Seoul"
  • Beneficiary Bank SWIFT Code: e.g., SHBKKRSE
  • Beneficiary Bank Address: Provided by your Liaison
  • Beneficiary Account Number: The temporary account number
  • Beneficiary Account Name: "[Company Name] 설립등기용"
  • Amount: 1,000,000 KRW (your bank will convert from USD, typically $750-800)
  • Purpose of Payment: "Capital investment for company incorporation" or "Stock acquisition"
  • Reference/Message to Recipient: Your name and "Form 7-6 notification on [date]"
Currency Considerations:
Option A: Send USD, Bank Converts to KRW (Recommended)
  • Instruct your U.S. bank to send approximately $800-850 USD
  • Korean receiving bank will convert to KRW at their exchange rate
  • Slightly more than 1M KRW ensures conversion covers the full amount after fees
  • Any excess over 1M KRW can remain in the account or be returned after registration
Option B: Send Exact 1,000,000 KRW (Less Common)
  • Some U.S. banks (typically larger institutions) offer foreign currency wires
  • You specify "send exactly 1,000,000 KRW"
  • Higher fees (typically $50-80 vs. $25-40 for standard international wire)
  • Guarantees exact amount arrives
Timing and Fees:
  • Processing Time: 1-3 business days for funds to reach Korea
  • U.S. Bank Wire Fee: $25-50 (varies by bank and account type)
  • Intermediary Bank Fees: $10-25 (sometimes deducted from transfer amount)
  • Korean Receiving Bank Fee: Usually 10,000-20,000 KRW ($7-15)
  • Total Expected Cost: $50-90 in wire transfer fees

Common Wire Transfer Mistakes
  • Incorrect SWIFT Code: Double-check the SWIFT code with your Liaison. One wrong character = funds go to wrong bank.
  • Missing Purpose Code: Some banks require specific purpose codes for international wires. Your U.S. bank may ask, "What's this for?" Answer: "Foreign investment / capital contribution."
  • Compliance Holds: U.S. banks may hold the wire for 24-48 hours for compliance review if it's your first international transfer or a large amount. Plan accordingly.
  • Inadequate Amount: If you send exactly $750 and fees eat into it, less than 1M KRW may arrive. Always send slightly more to account for fees.
Step 2.5: Obtain Capital Deposit Certificate (잔액증명서)
The Critical Document for Court Registration
Once the 1,000,000 KRW arrives in the temporary account, your Liaison must obtain an official "Balance Certificate" (Janeak Jeungmyeongseo / 잔액증명서) from the bank. This certificate is required by the Court Registry as proof that your company has the declared capital.
What the Certificate Contains:
  • Account holder: "[Company Name] 설립등기용"
  • Account balance: 1,000,000 KRW
  • Confirmation that funds are "frozen for incorporation purposes"
  • Issue date (must be recent—usually within 2 weeks of Court filing)
  • Bank's official seal and signature
Your Liaison's Process:
1
Confirm funds cleared
International wires typically show as "pending" for 1-2 days before final clearance
2
Request Balance Certificate from bank
Usually issued immediately at the bank counter or online portal
3
Bank stamps and certifies the certificate
Some banks charge a small fee (5,000-10,000 KRW) for this document
4
Certificate is valid for 2-4 weeks
Your Liaison must file with the Court Registry before the certificate expires

Milestone Achieved: With the capital in Korea and the Balance Certificate obtained, you're now ready for the official incorporation filing. Your Liaison has everything needed to register the company with the Court.
Phase 2 Complete!
Your 1,000,000 KRW investment is now secured in Korea, the Stock Acquisition Notification is filed, and the Balance Certificate is ready. Phase 3 (registration with the Court) can now begin.
Phase 3: The Registration Phase (Your Liaison's Boots-on-the-Ground Work)
Timeline: 1-2 weeks
Registry Fees: $75-150
Step 3.1: Creating and Registering the Corporate Seal (In-gam / 인감)
The Corporate Seal: Your Company's Legal "Signature"
Before filing incorporation documents, your Liaison must have the company's official corporate seal (In-gam) created and registered. Remember: in Korea, the seal impression IS the signature—no seal impression = document isn't legally binding.
The Seal Creation Process:
01
Design and Carve the Seal
Your Liaison visits a licensed seal maker (typically found near court registry offices) and commissions a corporate seal with the company's Korean name.
  • Material: Traditionally stone, wood, or resin (stone is most prestigious)
  • Size: Typically 2cm x 2cm square or circular
  • Design: Company name in Korean characters (한자 or 한글 style)
  • Cost: 30,000-100,000 KRW ($22-75) depending on material and craftsmanship
  • Time: 1-3 days for creation
02
Prepare Seal Registration Documents
To register the seal, your Liaison prepares:
  • Seal Registration Application Form (인감등록 신청서)
  • Multiple impressions of the new seal on paper (to show the registry what the official seal looks like)
  • Your Power of Attorney (proving your Liaison can register a seal on your behalf)
  • Liaison's Korean ID
03
File with Court Registry Office
Your Liaison visits the District Court Registry Office (typically the same office where the company will be registered) and submits the seal registration application.
  • Processing: Usually same-day or next-day approval
  • Fee: Approximately 10,000-20,000 KRW ($7-15)
04
Receive Seal Certificate (인감증명서)
Once registered, the Court issues a "Seal Certificate" that can be used to verify the authenticity of the company's seal impressions on official documents. This certificate is like a notarized statement saying, "This seal impression is the official signature of this company."

Seal Security and Custody
Your Liaison will maintain physical custody of the corporate seal in Korea. Since the seal IS the legal signature, it must be kept secure—typically in a locked safe or security box. Your Liaison will only use the seal for authorized company business as defined in your Power of Attorney.
Best Practice: In your service agreement with your Liaison, specify that any use of the corporate seal requires your prior written approval (via email or messaging) for transparency.
Step 3.2: Filing Incorporation Documents with the Court Registry
The Court Registration Process: Where Your Company Legally Comes to Life
With the corporate seal registered and all documents prepared, your Liaison now files the official incorporation application with the District Court Registry Office (등기소). This is the moment your Yuhan Hoesa transitions from paperwork to legal entity.
Complete Document Package for Court Filing:
  1. Application for Company Registration (법인설립등기신청서) - Standard form filled out with company details, stamped with the corporate seal
  1. Articles of Incorporation (정관) - Original copy in Korean, stamped with corporate seal on every page (or at least the signature page)
  1. Minutes of Inaugural Meeting (창립총회 의사록) - Document recording the "first shareholders meeting" where directors were appointed and Articles were approved, stamped with corporate seal. Even though you're the sole shareholder, Korean law requires this formality
  1. Acceptance of Appointment by Director (이사 취임승낙서) - Written statement from you (via your Liaison with POA) accepting the role of director, stamped with corporate seal
  1. Capital Deposit Certificate (잔액증명서) - The Balance Certificate from Phase 2 showing 1,000,000 KRW in the bank
  1. Proof of Registered Office (사무실 임대차계약서 또는 등기부등본) - Lease agreement for the registered office address, OR if using a virtual office service, a "Business Address Usage Agreement"
  1. Apostilled Documents from U.S. - Your Power of Attorney (apostilled), your passport copy (apostilled and certified), proof of U.S. residence (apostilled), all with certified Korean translations
  1. Seal Certificate (인감증명서) - Certificate proving the corporate seal is registered
  1. Registration Fee Payment Receipt - Proof of payment for registration tax and fees (paid at the court)
Filing Process (What Your Liaison Does):
1
Day 1: Submit Complete Package to Court Registry
Your Liaison visits the District Court Registry Office in the jurisdiction where your company's registered office is located (e.g., Seoul Central District Court if in Seoul). The clerk reviews the documents for completeness.
Digital Option: Since 2026, many court registries accept online submission through the Supreme Court's electronic registry system. Your Liaison may file digitally with scanned documents, then mail originals.
2
Day 1: Pay Registration Tax and Fees
Registration costs are calculated based on capital amount:
  • Registration Tax: 0.4% of capital = 4,000 KRW (for 1M KRW capital)
  • Local Education Tax: 20% of registration tax = 800 KRW
  • Court Filing Fee: Approximately 60,000-100,000 KRW ($45-75)
  • Total: Approximately 70,000-110,000 KRW ($52-82)
3
Day 2-7: Court Reviews Application
The registry office reviews all documents for legal compliance. If issues are found (e.g., seal impression unclear, missing document), they'll contact your Liaison for corrections. With properly prepared documents, approval is routine.
4
Day 7-14: Registration Approved
Once approved, the Court issues a confirmation notice. At this moment, your company officially exists as a legal entity in South Korea.
5
Day 14: Obtain Corporate Register (등기부등본)
Your Liaison requests an official "Corporate Register Extract" from the Court. This document is proof of your company's existence and contains all registered information: company name, address, directors, shareholders, capital, and registration date.
  • Available online instantly through the Supreme Court's registry portal
  • Cost: 1,000 KRW ($0.75) for digital copy, 2,000 KRW for certified paper copy
  • Can be downloaded by anyone; it's public information

Major Milestone: Your company is now a legally registered entity in South Korea! It has a unique Corporate Registration Number, an official government record, and legal standing to conduct business. However, you still cannot operate commercially until completing tax registration in Phase 4.
Phase 3 Complete!
Your Yuhan Hwesa is officially incorporated and registered with the Korean Court. The Corporate Register proves its existence, the corporate seal is registered, and the 1M KRW capital is secured. Now it's time to make it operational by registering with the tax authorities.
Phase 4: Tax Registration & Launch
Timeline: 4-5 days
No Filing Fees
Step 4.1: Business Registration with the National Tax Service (NTS)
The Business Registration Certificate: Your License to Operate
While the Court registration makes your company legally exist, the Business Registration Certificate (사업자등록증 / Sa-eop-ja Deung-rok-jeung) from the National Tax Service (NTS) is what allows you to actually conduct business. Without this certificate, you cannot:
  • Issue tax invoices (required for B2B transactions in Korea)
  • Receive tax invoices from vendors
  • Open a permanent corporate bank account
  • Legally generate revenue
  • Hire employees
  • Rent commercial space
What the Business Registration Certificate Contains:
  • Business Registration Number (사업자등록번호): A unique 10-digit number, similar to an EIN in the U.S.
  • Company Name: In Korean, as registered
  • Business Owner: The registered director (you)
  • Business Address: Registered office location
  • Business Type: General corporate services, specific industry codes
  • Registration Date: When the certificate was issued

Legal Timeline Requirement
Korean tax law requires companies to register with the NTS within 20 days of court registration. Missing this deadline can result in a 500,000 KRW ($375) penalty. Your Liaison will ensure compliance.
Step 4.2: Filing for Business Registration (Your Liaison's Process)
Documents Required for NTS Registration:
  1. Business Registration Application (사업자등록신청서) - Standard NTS form filled out with company details
  1. Corporate Register (등기부등본) - Recently issued copy (within 3 months) from the Court Registry
  1. Articles of Incorporation (정관) - Copy of the Articles filed with the Court
  1. Lease Agreement or Office Proof - Copy of office lease or virtual office usage agreement
  1. Director's Identification - Your passport copy. If your Liaison is filing on your behalf, they present their Korean ID plus your Power of Attorney
  1. Seal Certificate (인감증명서) - Corporate seal certificate from the Court
Day 1: Visit Local Tax Office
Your Liaison goes to the tax office in the jurisdiction where your company's registered office is located (e.g., Gangnam Tax Office if your office is in Gangnam-gu, Seoul).
Day 1: Submit Application
Tax officer reviews documents. If complete, they process the application on the spot.
Digital Option: The NTS now offers online registration through the Hometax portal (www.hometax.go.kr). Your Liaison can file electronically with scanned documents.
Day 1-3: Tax Office Issues Business Registration Certificate
Typically issued within 1-3 days. Some tax offices provide same-day issuance if filed in person before noon.
  • Physical Certificate: A printed certificate on official NTS paper with a raised seal
  • Digital Version: Also available for download from the Hometax portal
Day 3-5: Receive Business Registration Number
The certificate includes your company's unique 10-digit Business Registration Number (BRN). This number must be displayed on all invoices, contracts, and official company documents.

You're Now Operational! With the Business Registration Certificate in hand, your company can legally conduct business in South Korea. Your Liaison will send you a scan of the certificate, and you'll use the Business Registration Number on all company communications.
Step 4.3: Open Permanent Corporate Bank Account
The Final Banking Step
Now that you have both the Corporate Register AND the Business Registration Certificate, your Liaison can open the company's permanent corporate bank account. This is where the 1,000,000 KRW from the temporary capital account will be transferred for operational use.
Documents Required for Corporate Account Opening:
  • Corporate Register (등기부등본) - recent issue
  • Business Registration Certificate (사업자등록증)
  • Articles of Incorporation (정관)
  • Corporate Seal (인감) and Seal Certificate
  • Director's identification (your passport copy + Power of Attorney for your Liaison)
  • Proof of office address
  • Initial deposit (can transfer the 1M KRW from the temporary account)
Bank Selection Considerations:
Recommended Banks for Foreign-Invested Companies:
Shinhan Bank
Excellent foreign investment support, English-speaking staff in major branches
KEB Hana Bank
Strong international banking services, easier for foreign directors
Woori Bank
Good online banking platform, competitive fees
IBK (Industrial Bank of Korea)
Focuses on SMEs, favorable loan terms for small businesses
Avoid: Small local banks or credit unions may have difficulty processing foreign ownership structures.
Account Opening Process:
1
Liaison visits bank with complete documents
For foreign-invested companies, major branches in business districts (e.g., Gangnam, Yeouido in Seoul) have more experience and are more accommodating.
2
Bank reviews and approves account
Same-day approval in most cases if all documents are in order. Some banks may require 1-2 days for internal compliance review due to foreign ownership.
3
Transfer funds from temporary account
Your Liaison instructs the bank to transfer the 1,000,000 KRW from the temporary capital deposit account to the new permanent corporate account. This usually happens automatically once the permanent account is opened.
4
Receive online banking access
The bank provides:
  • Corporate debit card
  • Online banking credentials (username, password, OTP device or mobile app)
  • Checkbook (if requested, though checks are rarely used in Korea)

Important: Online Banking Access Management
Since your Liaison physically opened the account in Korea, they'll initially have access to online banking. For security and control:
  • Set Clear Protocols: Agree on transaction approval procedures (e.g., your Liaison notifies you before making any payment over a certain threshold)
  • Consider Dual Control: Some banks allow setting up accounts requiring dual authorization (e.g., Liaison initiates transaction, you approve remotely)
  • Regular Statements: Have monthly bank statements emailed to you for oversight
  • Future Option: Once you have a D-8 visa and can visit Korea, you can add yourself as an authorized signer and change passwords
Step 4.4: Complete Foreign Exchange Registration
Final Compliance Step: Reporting to Bank of Korea
After the corporate bank account is opened, your Liaison must complete one final foreign exchange formality: notifying the Bank of Korea (via the corporate bank) that the foreign investment has been completed and the company is now operational.
What This Involves:
01
Completion Report to Foreign Exchange Bank
Your Liaison submits a "Foreign Investment Completion Report" to the same bank where Form 7-6 was originally filed. This report includes:
  • Copy of Corporate Register proving company is registered
  • Copy of Business Registration Certificate
  • Confirmation that the full 1,000,000 KRW investment was used for company establishment
  • Corporate bank account details
02
Bank Updates Foreign Exchange Records
The bank updates its records to show your investment is now "completed" rather than "pending." This closes the loop on the Stock Acquisition Notification from Phase 2.
03
No Further FDI Obligations
Since your investment is under 100M KRW, you are NOT required to register with KOTRA as a "Foreign-Invested Company" under FIPA. The foreign exchange notification is sufficient.
Timeline and Costs:
  • Time: 1-2 hours at the bank (same-day completion)
  • Cost: No filing fee
  • When: Within 30 days of company registration (to maintain clean compliance records)
Congratulations! Phase 4 Complete!
Your Yuhan Hoesa is fully established, compliant, and ready for business operations in South Korea. You can now enter into contracts, generate revenue, and build your Korean market presence—all while managing operations remotely through your trusted Korean Liaison.
Your Path Forward
Establishing a Yuhan Hoesa in South Korea with minimal capital (1,000,000 KRW) is an accessible and practical way for U.S. entrepreneurs to enter the Korean market without relocating or making massive upfront investments. By partnering with a trusted Korean Liaison and leveraging the Power of Attorney mechanism, you can navigate Korean corporate law, foreign exchange regulations, and tax compliance entirely from the United States.
The key to success is meticulous preparation on the U.S. side—ensuring every document is correctly notarized and apostilled—and selecting a competent, reliable Liaison in Korea who understands foreign investment procedures and can execute flawlessly on the ground.
With your Yuhan Hoesa established, you gain legal standing in South Korea: the ability to enter contracts, generate revenue, hire employees, and build a sustainable business presence in one of Asia's most dynamic economies. Whether you're testing a new market, establishing a distribution channel, or laying the groundwork for future expansion, this structure offers flexibility, limited liability, and operational legitimacy—all for a fraction of the cost of traditional market entry strategies.
Ready to Begin?
Next Immediate Steps:
  1. Identify and vet potential Korean Liaison candidates (corporate service firms or vetted individual agents)
  1. Confirm your 2-3 preferred company name options and have them checked for availability
  1. Begin the notarization process for your Power of Attorney and supporting documents
  1. Open communication channels with your chosen Liaison and establish clear timelines
  1. Prepare your U.S. bank for the international wire transfer (notify them in advance to avoid compliance holds)
With the roadmap provided in this guide, you have everything you need to establish your Korean company with confidence. Welcome to the Korean market—your 'Yuhan Hoesa' (otherwise known as an LLC or Limited Company) awaits!

This guide is based on South Korean law and regulations as of January 2026. While comprehensive, it is for informational purposes and does not constitute legal advice. Always consult with licensed Korean attorneys and tax professionals for your specific situation.
Kontactic specializes in helping US, foreign, global brands enter the South Korean market, and furthermore sell on Coupang, the Amazon of Korea. Please visit www.kontactic.com or contact support@kontactic.com for more information or help setting up your own Korean entity.
Document sources: InvestKorea, Korean Commercial Code, Foreign Investment Promotion Act (FIPA), Foreign Exchange Transaction Act