There are two main ways for foreign individuals or companies to enter the Korean market for business purposes. The first is through the establishment of a liaison office or branch office that falls under the jurisdiction of the Foreign Exchange Transactions Act, while the second is through the establishment of a local corporation that falls under the jurisdiction of the Foreign Investment Promotion Act. The former requires a D-7 visa for residence, while the latter requires a D-8 visa for corporate investment.
In order for a foreigner to establish a "Foreign Investment Corporation" in Korea and conduct business, the following procedures must be followed: (1) declaration of foreign investment to the Foreign Exchange Bank or KOTRA, (2) remittance of investment capital (minimum of KRW 100 million) from overseas in the name of the investor, (3) registration of the corporation establishment with the local court or registry office, (4) business registration with the relevant tax office, (5) registration of the foreign investment company, and (6) application for a D-8 visa for corporate investment from the immigration office with jurisdiction over the place of residence. However, if registering as an individual business owner, the registration process for a corporate establishment can be omitted.
For foreign exchange students who do not have Korean language proficiency, part-time employment is only allowed within 1/2 of the time allowed under the part-time employment regulation, regardless of holiday or vacation periods and university attendance status. However, exceptions are made for all degree programs taught entirely in English upon submission of supporting documents.
Additionally, foreigners who bring in more than KRW 300 million in business capital from overseas and establish a personal business with the intention of operating a trade or restaurant business can apply for a D-9 qualification in trade management. Those who invest more than USD 300,000 and employ two or more Korean citizens can apply for the F-2 visa for free economic activity, which allows for employment and other economic activities. Lastly, high-value investors who invest more than USD 500,000 and employ five or more Korean citizens (not including part-time employees) can apply for the F-5 visa for permanent residence regardless of their Period of Residence in Korea.


< Flow Chart of Foreign Investment Procedures >

Foreign investment report (foreign exchange bank or KOTRA)
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Remittance of investment funds (foreign exchange bank, customs carry-on)
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Registration of incorporation (local court or registry office)
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Incorporation report and business registration (tax office or KOTRA)
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Transfer of paid-in capital to a corporate account (foreign exchange bank)
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Registered as a foreign-invested company (first foreign investment reporting agency)



















(Source: 2018 Foreign Investment Guide, Kotra, page 29)

When reporting foreign investment, a foreign investor can report directly to a foreign exchange bank or KOTRA or have an agent report (with the signature of the investor, notarization, and power of attorney attached). In most cases, foreign investment is reported to a foreign exchange bank after designating the main bank in advance after the corporation is established. Documents to be submitted when reporting foreign investment include two copies of the foreign investment report, documents proving the nationality of the foreigner, and a power of attorney (when reporting by an agent). Documents proving the nationality of a foreigner are: (1) If the foreigner is a corporation or organization, a certified copy of the register issued by the government or other authoritative authority of the country, or a document proving that the corporation or organization is located in the country, (2) Foreigner In the case of this individual, documents proving nationality, such as a citizenship certificate or passport issued by the government or other authorized authority of the country concerned, are required.
Next, when a foreign investment is reported, the investment funds must be remitted or carried into Korea from abroad. In other words, in principle, when a foreign investor remits funds from abroad through a foreign exchange bank designated in Korea in his or her name or carries them in, he or she must report them to customs upon arrival and receive a certificate of foreign exchange declaration. After exchanging money and despositing it in the stock payment storage account, the bank issues a stock payment storage certificate (required for registration of incorporation) and a foreign exchange purchase certificate or overseas remittance transaction statement (required for foreign-invested company registration). Incorporation registration must be done with the competent court, and business registration must be done with the competent tax office. For reference, if you register as a restaurant business, you must obtain a business report from the food hygiene department of the district office, and if you register as a foreign language academy, you must obtain a certificate of establishment registration from the district office of education. When the incorporation registration and business registration procedures are completed, the new company becomes a legally valid corporation, and accordingly, the foreign exchange bank collects the necessary documents and transfers the paid-in capital stored in the new corporation's account.
A foreign investor (agent) or foreign-invested company must complete an application for registration of a foreign-invested company with the trustee bank within 60 days when payment of the object of investment is completed (acquisition of new stocks) or in the case of acquiring existing stocks. Documents to be submitted include one copy of the foreign-invested company registration application, a copy of the foreign-invested company’s corporate registration and business registration certificate, a copy of the foreign exchange purchase certificate or foreign currency deposit certificate confirming the sender (foreign investor), a list of shareholders (members of the association, contributors) (company seal stamped, original copy), or documents proving stock price transfer and acquisition.