Representative Office in Korea

If you want to open a representative or liaison office in Korea, you can rely on our local specialists.

Who can establish a liaison office in Korea?

The representative office can be set up by foreign companies only.

What should I know before opening a representative office in South Korea?

The Korean representative office does not have a legal personality, which means that:

• it is not a separate entity from the parent company;
• it cannot own property in Korea;
• it is not liable for any debts it incurs; the parent enterprise is.

What is the procedure to register a liaison office in South Korea?

Its incorporation procedure must follow similar steps to those of registering a branch. This means that:

1. the parent company must draft a set of documents to file with the Trade Register;
2. the foreign business must also secure an operational space for the representative office;
3. the parent enterprise must appoint a local agent to maintain the relation with all interested parties in Korea, including the authorities;
4. the Korean liaison office must obtain a tax identification number;
5. it is also necessary to submit a notification with a foreign exchange bank in Korea.

Additional requirements may apply such as registration for Social Security if the foreign business decides to hire employees.

What documents are required for setting up a representative office in Korea?

• proof of the legal address under the form of a lease or rental agreement;
• information about the objectives of the parent company;
• the foreign entity’s bylaws and/or Articles of Association and the Certificate of Incorporation;
• details of the shareholders and directors of the parent firm (copies of their passports);
• date of the incorporation of the Korean representative office;
• information about the appointed local agent (the person must be a Korean resident);

It is useful to know that the parent company can dispatch an employee from its headquarters for whom a Korean residence permit and work visa can be obtained with the help of our specialists.

What are the activities a foreign company can undertake through a representative office in Korea?

• market research activities;
• promotional operations;
• acting as a contact point between the parent company and Korean partners or clients;
• participating in fairs and exhibitions;
• helping the parent company preparing for future commercial operations.

What are the limitations of a representative office in Korea?

This entity cannot:

• generate income on behalf of the parent company;
• issue invoices;
• receive payments;
• sign commercial agreements.

Can I hire employees in a representative office in South Korea?

Yes. You can hire local or foreign workforce, depending on your needs.

Is tax registration required when opening a liaison office in Korea?

Yes. Even if it does not make profits, the representative office can hire services or buy goods in Korea, which may imply the payment of the VAT.

Also, when hiring employees in Korea, the parent company ensure local payroll rules are respected.

Is it possible to open a Korean representative office remotely?

Yes, with the help of agents specialized in Korean company formation who can represent you in the procedures with the Korean authorities.

How long does it take to open a representative office in Korea?

The procedure takes 2 to 3 weeks if all the documents are in order.

If you want to open a liaison office in Korea and need assistance, please contact our local team!