The special purpose vehicle or entity (SPV/SPE) is a company registered with the intention of carrying out a specific project. It is also possible to set up a SPV in Korea, and the incorporation process is completed in the same way as for any domestic business.
Below, company formation agents in Korea explain the procedure of creating an SPE and what it can be used for. If you want to establish such a structure, you can rely on our professional services.
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Registration of SPV companies in South Korea
Investors who want to set up SPEs in Korea must follow the same registration steps as for any other type of company, namely:
- preparing the incorporation papers;
- filing them for registration with the Trade Register;
- obtaining a tax identification code;
- applying for the necessary licenses, if required.
Foreign investors can also create Korean SPVs, with the mention they need to comply with a few additional steps and requirements. Here they are:
- obtaining an investment certificate from the Foreign Investment Agency, if the SPV is fully foreign-owned;
- depositing a minimum capital in accordance with the legal form selected.
Most of the time, special purpose vehicles in Korea are registered as private limited liability companies for which a minimum capital of KRW 100 million (around USD 70,000) is needed.
Our business registration consultants in Korea can ensure you meet all incorporation conditions if you want to create a fully foreign-owned SPV.
Types of SPV companies in Korea
The possibility to create an SPV in Korea appeared in 1999, when the Financial Supervision Commission decided to introduce corporate restructuring entities for businesses in financial distress.
There are several types of SPEs that can be set up in South Korea, among which:
- the special purpose vehicle for asset-backed securitization purposes, which can be used in bankruptcy proceedings, in accordance with the Asset-Backed Securitization Law;
- the corporate restructuring vehicle which can be used to avoid double taxation and to diversify the risks of the parent company;
- the Real Estate Investment Trust Company (REIT) through which a parent company can lend money to real estate developers in Korea;
- the SPC used to finance various projects without the parent company incurring any risks, if the SPE needs to borrow money and goes bankrupt;
- the Special Purpose Acquisition Company used to intermediate mergers for publicly listed companies;
- the SPE for leveraged lease which enables the parent company to obtain various tax benefits in Korea.
You can rely on our local specialists no matter the form you want your Korean SPC to take.
The main uses of SPVs in South Korea
If you want to set up a SPV in Korea, you can use it for any of the following purposes:
- securitization;
- finance various projects developed on the local market;
- risk reduction for your parent company;
- transfer the assets of another company for protection;
- for obtaining various tax exemptions, a matter where our accountants in Korea have competence;
- for investing in real estate projects.
How many companies operate in Korea?
Here is some recent data on the number of companies operating in Korea:
- At the level of 2023, there were approximately 7.54 million businesses;
- In 2024, there were approximately 1,183 startups;
- In 2025, Korea also had 2,759 companies listed on the Stock Exchange.
Apart from our local company formation agents, you can also rely on our lawyers for support in immigration to Korea. We can help you file for residency in Korea.
Do not hesitate to contact us if you want to open an SPV in Korea and need assistance.