Opening a financial enterprise implies registering a local business and applying for a financial license in Korea. In the case of foreign businesspersons, an investment business permit must also be obtained.
If you want to obtain a financial license in South Korea, there are several steps and documents to prepare, and our company formation agents will guide you through the process.
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Licensing stages when setting up a financial entity in Korea
If you want to apply for a Korean financial license, you need to know that the company will go through:
- a pre-authorization phase;
- the licensing stage.
For this purpose, you will need to prepare the following documents:
- the application form issued by the relevant authority;
- the company’s Certificate of Registration;
- information about the executives of the company;
- proof of having a physical office in South Korea;
- a detailed business plan.
Foreign financial companies can also establish branches in Korea. However, they need to have operated in their home countries for at least 3 years before filing for financial licenses here. They must also appoint at least one local representative and provide various documents, among which annual accounts for the past 3 years. Our accountants in Korea can assist with this process.
Our business registration specialists can guide foreign business owners with respect to applying for banking or other types of authorizations in South Korea.
Types of activities based on the available Korean financial licenses
Here is a brief presentation of the financial licenses available in South Korea:
- banking licenses;
- investment permits;
- licenses for electronic financial companies;
- insurance-related business permits.
With respect to the issuing authorities, banking licenses are released by the Bank of Korea, while the others fall under the supervision of and issuance of the Financial Services Commission (FSC).
Business registration when opening a financial company in Korea
One of the main requirements to secure a Korean financial license is to have a physical presence in this country. As such, you will need to go through the Korean company formation procedure which implies:
- selecting a legal entity, among which the limited liability company is recommended for local businesses, and the branch office for foreign financial enterprises;
- applying for an investment license in the case of foreign business owners;
- registering the company with the Trade Register.
Following that, the licensing phase can be commenced. However, the business permit issued depends on the activity to complete and the legislation to adhere to.
If you want to open a financial company, you can rely on Korean company formation specialists. They will also help with the application for the necessary license.
Activities to be completed by financial companies in South Korea
Depending on the license to obtain, a Korean financial company can undertake various activities. Among them, we present the following:
- accepting and managing deposits;
- credit/loan approvals;
- credit and debit cards issuance;
- selling insurance and reinsurance packages;
- investment fund management;
- investment and financial advisory.
Apart from these, South Korea is making progress in approving the operations of internet-operating banks.
How many financial businesses operate in Korea?
According to the latest statistics issued by the FSC, at the end of June 2024, there were:
- 53 operational local and foreign banking institutions;
- 53 insurance and reinsurance companies with activities in Korea;
- 967 investment companies operating in South Korea.
If you want to immigrate to South Korea and start a business as a foreigner, you can rely on our lawyers. They will help you apply for residency in South Korea and register your company.
If you want to open a company and apply for a financial license in Korea, do not hesitate to contact us.