Setup_South Korea
Depending on the purpose, there are four set-up directions to choose from.
Established a Korean corporation
By establishing a domestic company in Korea, the company can benefit from almost the same tax credits as domestic corporations in Korea. A company in which foreign capital is invested may require a minimum capital under the relevant laws (it must be reviewed at the time of establishment). Also, it is necessary to report to the financial authorities and foreign exchange authorities before establishment.
Personal Business
Those who do business outside of Korea as an individual, not a corporation, can start a business in Korea in this form. In this case, it is necessary to determine whether business registration in Korea is necessary through a review of tax treaties and Korean tax laws.
Branch
A branch is somewhat more convenient than the establishment of a company in terms of moving funds. However, there is a possibility that you may not receive the same tax credit as general Korean companies. Also, the branch does not mean that the TP issue completely disappears. However, if there is a PE issue, it is recommended to preemptively establish a branch to lower tax risk.
Liaison Office
A liaison office is formed when it is expected that no business will be conducted in Korea in the foreseeable future. Since there is no corporate tax obligation in Korea, Korean tax authorities often question whether or not they are actually acting as branches.
GTI's support partner in Korea
JUDONG OH
Judong is a partner supporting the Korean section of "Global Tax Inside". He was in charge of tax affairs for foreign corporations as a senior manager at one of the Big 4 accounting firms, and is now working as an international tax partner at Daseung Tax Firm.