Powers of attorney (POAs) in Korea are used for representing natural persons and companies in various matters. Also known as a letter of attorney, this document must meet certain requirements upon creation to be considered valid. Below, our local agents explain the main characteristics of powers of attorney. You can also grant us a POA if you want to open a company in Korea, for example.
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Parties in a Korean power of attorney
The grantor or principal and the agent or attorney-in-fact are the parties that need to be mentioned when creating a power of attorney in South Korea. Grantors can be:
- natural persons, foreign or Korean citizens;
- companies, domestic and foreign.
In the case of natural persons, the main requirements to respect when drafting a POA are:
- having the legal age to seek representation;
- full mental capacity when creating the document.
With respect to the agent, the following can be appointed:
- family members;
- Korean lawyers;
- other agents.
When it comes to other agents, our Korean company formation specialists are often hired by foreign investors who want to start businesses here. Another example is using the services of our accountants in Korea for fiscal representation.
How to issue a POA in Korea
Compared to other countries, when issuing a power of attorney in Korea, alongside the letter itself, the grantor must also present:
- the ID/residence permit/passport, in the case of natural persons;
- the corporate seal and/or the business license (if one was issued), in the case of companies.
Foreign powers of attorney must be translated into Korean and legalized to be valid.
Types of Korean powers of attorney
Here are the main types of POAs one can grant in Korea:
- general;
- special or specific;
- durable.
The Korean general power of attorney enables the agent to perform various tasks on behalf of the grantor and has a longer validity. The specific one, on the other hand, limits the powers of the attorney-in-fact and its validity terminates after the matter is dealt with.
The durable power of attorney is a special document that can be used when the grantor becomes incapacitated and can no longer make decisions. This type of letter is usually created in advance.
When are POAs used in Korea?
There are various situations in which powers of attorney are used in Korea, among which are also the examples presented above. Apart from these, a natural person can create such a document when he or she needs representation in:
- real estate transactions, no matter if it is selling, buying, or even renting a property;
- opening a local bank account;
- inheritance distribution;
- immigration to South Korea.
When it comes to the latter aspect, many foreign citizens seeking to obtain residence permits in Korea rely on specialized agents because of language barriers. The power of attorney can be used to file the immigration papers with the relevant authorities.
Companies also delegate various tasks when dealing with various governmental bodies in Korea. For example:
- when filing for business licenses;
- when registering trademarks;
- when completing business transactions.
Who can draft powers of attorney in South Korea?
Local and foreign citizens and companies can address Korean lawyers to have POAs drafted. According to the latest data gathered by a magazine:
- Between 2013 and 2023, the number of Korean lawyers more than doubled from 700 to 1,700;
- In 2024, there were 34,672 lawyers offering their services in Korea.
If you want to draft a power of attorney and need more information, please contact us. We remind you that we can offer representation in various matters.