Establishing a Company and Obtaining a Residence Permit in South Korea: 2026 Perspective
South Korea offers a highly attractive market for foreign investors with its high technology, logistics, entertainment (K-pop, K-drama), and advanced manufacturing infrastructure as it enters 2026. Foreigners can establish 100% foreign-owned companies and obtain long-term residence permits with a certain amount of business investment.
However, the process can lead to time loss and unnecessary costs when managed independently due to intense paperwork, Korean documentation, and immigration rules. In this guide, I summarize the process of company establishment and residence permit (especially the D-8 business investment visa) through business investment in South Korea based on the conditions of 2026 step by step.
1. Why Should You Consider Opening in South Korea in 2026?
The South Korean economy stands out particularly in the following sectors with its export-oriented structure and strong technology ecosystem:
- High technology and electronics
- Automotive and advanced manufacturing
- Logistics and maritime transportation
- Entertainment sector (K-pop, K-drama, gaming)
Critical advantages for foreign investors:
- 100% foreign partnership is possible: There is no requirement for shareholders or directors to be Korean citizens or residents. A completely foreign structure can be established in both shareholding and management.
- Strong digital infrastructure: The trade registry, tax office, and immigration processes are increasingly moving to online platforms.
- K-ETA and consulate visa system: The electronic travel authorization (K-ETA) becomes permanent for short-term entries, while the classical consulate/immigration office application system is maintained for long-term and investment visas.
In summary: Korea is a serious alternative for both market entry and medium-long term residence plans. However, it is critical to correctly structure the investment amount, business plan, and visa strategy from the beginning.
2. Basic Company Types for Foreigners
Choosing the most preferred types of companies for foreigners in South Korea is important for both operational flexibility and residence permit planning. The basic options are as follows:
2.1. Stock Company (Chusik Hoesa)
The structure most similar to a joint-stock company in Turkish law.
Features:
- Capital divided into shares, suitable structure for share transfer and investment
- Standard form for medium and large-scale projects, ventures planning investment rounds
- Board of directors structure and more detailed corporate governance rules
Who is it suitable for?
- Ventures considering raising investment, increasing the number of partners, or going public
- Medium-large scale businesses where corporate structure and brand perception are important
2.2. Limited Liability Company (Yuhan Hoesa – LLC)
A more flexible, SME-friendly, non-public limited company structure.
Features:
- Shares are not publicly offered, the number of partners is usually limited and more closed structure
- Establishment and management processes are simpler compared to stock companies
- Practical for small/medium-scale trade, consulting, and service companies
Who is it suitable for?
- SME-scale trade, consulting, e-commerce, agency, or technology services
- Entrepreneurs looking for a quick and relatively low-cost start
2.3. Branch Office (Şube)
A branch of a foreign parent company in Korea; it is not considered a separate legal entity.
Features:
- The branch in Korea is an extension of the parent company; the main office is responsible for debts and obligations.
- Can engage in commercial activities, generate income, and issue invoices.
- Establishment and reporting processes may have different tax and accounting dynamics compared to an independent Korean company.
Who is it suitable for?
- Companies with an already active company considering Korea as an additional market
- Those who want to keep the brand and decision center in Turkey or another country
2.4. Liaison / Representative Office
A type of office for market research and representation that does not generate income.
Features:
- Cannot engage in commercial activities, sales, or invoicing.
- Can undertake functions such as market research, supplier negotiations, brand visibility, and coordination.
- Tax liabilities are much more limited compared to commercial companies; however, the scope of activities is also restricted.
Who is it suitable for?
- Companies wanting to establish a presence at low cost while the market is still in the testing phase
- Groups looking for only representation and communication offices in Korea
In practice, the vast majority of foreign investors prefer the stock company or LLC form, as it aligns with their residence permit and investment plans.
3. Legal Basic Requirements: Shareholders, Directors, Capital
3.1. Shareholders and Directors
- At least one shareholder is required; this person/entity can be real or legal, and there are no nationality restrictions.
- At least one manager/representative director must be appointed; there is no requirement for this person to be a Korean citizen or resident.
- In practice, some banks, landlords, or public institutions may prefer to work with a representative residing in Korea or who speaks Korean. This is not a legal requirement but can present a practical barrier.
3.2. Capital and D-8 Visa Connection
- Many types of companies have no legal minimum capital requirement. It is theoretically possible to establish a company with very low amounts.
- However, banks, business partners, and especially for the D-8 (Business Investment) visa, a practical lower limit has emerged.
- For the D-8 visa, as of 2026, an investment of at least 100 million KRW (approximately 100,000,000 won) is applied as a practical lower limit.
- While amounts like 50 million won were accepted in previous years, it has been observed that the application works more smoothly with investments of 100 million KRW and above recently.
Therefore, if the company will only be managed for commercial activities, without a visa or with short-term entries, low capital may be considered; however, if your goal is to obtain a residence permit through business, planning should be made from the outset with a capital of 100 million KRW and above.
4. Company Establishment Process in South Korea: Step by Step
Company registration is mostly completed within 2–3 weeks. The process may extend to 4 weeks with the opening of a bank account and sector licenses.
4.1. Preliminary Preparation Stage
Before starting, the following basic information needs to be clarified:
- Company name (in Korean and, if necessary, English)
- Business subject and activity codes suitable for the Korean classification system
- Share structure, capital amount, shareholder information (passport, company documents)
- Passport and address information of the director(s)
- Office address to be used in Korea and a draft lease agreement
At this stage, since language barriers and local legislation details come into play, working with a team like Corpenza, which knows both company establishment and immigration aspects, significantly speeds up the process.
4.2. Inquiry and Approval of the Company Name
- The company name must be unique.
- Similar names are checked through the Supreme Court’s online trade registry system.
- Additional licenses or permits may be required for financial-sounding words such as “Bank” or “securities”.
4.3. Preparation of the Articles of Incorporation
- The articles of incorporation must be prepared in Korean.
- If there are foreign shareholders/partners, a sworn English translation is generally prepared in practice.
- The articles of incorporation include headings such as the company’s purpose, capital amount, share distribution, management structure, general assembly, and decision-making procedures.
- Notarization may be required depending on the type and structure of the company.
4.4. Deposit and Block of Capital
- Before establishment, the determined capital amount is temporarily deposited into a trust/personal bank account.
- The bank issues a certificate showing the deposited amount; this document is used in trade registry registration.
- After registration is completed, the amount is transferred to a corporate account to be opened in the company’s name and can be used operationally.
4.5. Commercial Registry Registration
The company registration application is made to the Commercial Registry Office of the Regional Court to which the company’s headquarters address is affiliated.
Generally required documents include:
- Articles of incorporation
- Identification documents of shareholders and directors, signature/approval letters
- Bank letter or certificate regarding capital investment
- Office lease agreement or address usage authorization
- Company seal and seal certificate
- Standard registration application forms
The registration period generally varies between 3–10 business days. Some sources mention 3–5 days, while others refer to 8–10 days; in practice, the volume of applications and the completeness of documents play a critical role.
4.6. Tax Office Registrations (Business Registration)
- After the commercial registry process is completed, a Business Registration Certificate is obtained from the National Tax Service (NTS).
- Without this certificate:
- You cannot issue invoices,
- You cannot submit VAT/tax declarations,
- You cannot open a fully authorized corporate account in most banks.
4.7. Opening a Corporate Bank Account
Typically, the following documents are required to open a bank account:
- Commercial registry registration certificate
- Business Registration Certificate (tax registration)
- Company seal and seal certificate
- Legal representative’s passport and residence information
- Office lease agreement
- If necessary, board resolution or signature circular
Especially in completely foreign-owned new companies, banks may request additional requirements such as business plans, potential contract samples, and the director personally coming to the branch. At this stage, local language and relationship management become important.
4.8. Sector-Specific Licenses and Permits
Company registration may not be sufficient to start operations in every sector. For example:
- Restaurant/F&B: Food business license, hygiene and municipal approvals
- Educational institution: Permission from the relevant ministry or local education authorities
- Fintech/payment systems: License from financial regulatory authorities
In these areas, business plans, capital adequacy, and compliance conditions may be stricter. Licensing planning should be addressed alongside residence permit and investment structuring.
5. Ongoing Obligations After Establishing a Company
The work does not end with establishment; there are reporting and tax obligations that must be fulfilled every year:
- Annual corporate tax return: Declaration and payment to the National Tax Service
- VAT declarations: Periodic VAT notifications based on activity volume
- Independent audit: Mandatory financial audit for companies exceeding certain asset, turnover, or employee thresholds
- Payroll and social security: If you employ staff, salary taxes and social insurance premiums
Corpenza can help you coordinate these obligations between multiple countries, such as Korea and Turkey, with international accounting, payroll, and posted worker models.
6. Residence Permit Through Business Investment: D-8 Visa and Strategy
The main tool for entrepreneurs wishing to obtain long-term residence in South Korea through investment is the D-8 (Business Investment) visa. Company formation and investment should be considered together with the immigration dimension.
6.1. Basic Conditions of the D-8 Visa
The general framework for 2026 is as follows:
- Investment amount: In practice, an investment of at least 100 million KRW is expected. Although lower capital amounts are theoretically possible, they carry serious risks in approval processes.
- Business plan: A detailed plan including a sustainable revenue model, market analysis, employment plan, and financial projections is required.
- Company structure: Applications are generally made through a stock company or LLC established in Korea.
- Document package: Company registration documents, FDI (foreign direct investment) registration, bank receipts, tax records, business plan, investor’s passport, criminal record, health insurance, etc.
6.2. Application Process and Durations
The D-8 process generally proceeds with the following steps:
- Establishment of the company and investment of capital
- Completion of foreign investment notifications and tax registrations
- Application to the Korean consulate or relevant immigration office in Korea with the required documents
- Interview and additional document requests (if necessary)
- Issuance of the residence card (ARC) after approval
The operation may vary depending on the country applied and the nature of the file, but generally concludes within 1–2 months. The D-8 is initially granted for a limited period (e.g., 1–2 years) and can be extended by demonstrating that the business is actively conducted, the investment is genuinely utilized in Korea, and tax obligations are fulfilled.
6.3. Family Members and Long-Term Status
- D-8 visa holders can bring their spouse and children to Korea with dependent visa status.
- After the company has been active for a certain period and tax and employment indicators present a positive picture, there may be opportunities to transition to longer-term residence categories (e.g., F-2, eventually F-5 permanent residence).
6.4. K-ETA and Short-Term Entries
Short-term entries may be necessary for exploratory visits to Korea before company establishment, bank and consulting meetings, and office viewings. As of 2026:
- The K-ETA (Korea Electronic Travel Authorization) system becomes permanent for short-term tourist/business trips.
- However, for long-term and investment visas like D-8, the classical consulate/immigration office application is still mandatory; K-ETA does not replace these visas.
Correctly timing short visits – company establishment – D-8 residence plans reduces the risk of visa denial or status violation.
7. Costs, Taxes, and Operational Planning
When investing in South Korea, the budget should be calculated not only based on nominal capital but also on total setup and first-year operational costs.
Main items:
- Capital (with D-8 goal): at least 100 million KRW and above
- Establishment consultancy, legal and translation expenses
- Office/co-working rental fee, deposit
- Banking, notary, and official fees
- Accounting, payroll, tax consultancy services
Tax dimension:
- Corporate tax is applied at progressive rates based on the company’s profit.
- The VAT rate is generally around 10%.
- Foreign investors and certain sectors (e.g., high technology, R&D) may have incentives and tax reduction programs.
The critical point here is to correctly structure the double taxation prevention arrangements between Korea and Turkey (or other countries), profit distribution, and transfer pricing. Corpenza can design models that minimize the tax burden between Turkey and Korea, especially in group company structures, holding – branch – subsidiary setups, with its experience in international accounting and tax optimization.
8. What Should You Pay Attention to When Opening in South Korea with Corpenza?
South Korea is a market with high potential but strict regulations and a different language. Receiving professional support, especially in the following areas, increases both the speed and security of your investment:
- Choosing the type of company and country structure: Stock company, LLC, or branch? Centered in Korea or through another EU/Central European holding? Here, international tax and investment strategy is critical.
- D-8 visa and residence strategy: The investment amount, business plan, family status, and long-term transition goals to permanent residence must be compatible.
- Accounting, payroll, and posted worker: When sending personnel from Turkey or other countries to Korea, it is necessary to establish a model compliant with both Korean legislation and the social security and tax rules of the sending country.
Corpenza can reflect its experience in company formation, residence and citizenship, international accounting, payroll/EOR, and personnel leasing (posted worker) and tax optimization to South Korea projects. Thus, you can not only establish a company and obtain a visa but also create a sustainable and tax-optimized global structure.
9. Conclusion: How Should You Structure Your Company and Residence Plan in South Korea?
From the perspective of 2026, South Korea has:
- A strong growth potential with a high technology and entertainment economy,
- Company structures that foreigners can own 100%,
- Opportunities for residence and long-term residence through business investment.
It is positioned as a market with these features.
For a successful entry:
- Plan the type of company and capital structure together with residence visas like D-8.
- Manage the steps of trade registry, tax registration, and banking as a whole during the establishment process.
- Systematically establish annual tax, accounting, auditing, and payroll obligations from the start.
This way, you can control market risks and place your investment on a more secure ground from the immigration and tax perspective.
Disclaimer
This text is prepared for general informational purposes and does not constitute legal, financial, tax, or immigration advice in any way. Since South Korean legislation can change frequently, be sure to check current official sources and relevant country authorities before making decisions; obtain professional legal and financial advice suitable for your individual situation. Corpenza or the author cannot be held responsible for any damages arising from decisions made based on this text.
