Choosing an Administrative Agent for a Foreign-Invested Company in Korea: Scope, Documents and Steps

Overview

Setting up a company in Korea as a foreigner is not a single filing but a chain of steps. The Foreign Investment Promotion Act requires a person making a foreign investment to report it to the Minister of Trade and Industry (산업통상부장관) in advance, and to register the foreign-invested enterprise once events such as completing payment of the contribution occur. Company incorporation registration and business registration follow, and if the investor needs to live in Korea, a D-8 (corporate investment) status application and alien registration come after that. The first thing to check when choosing an agent is which part of this chain the agent actually handles.

This article does not rate or rank any office. It is a list of questions to work through before you delegate. Approval is decided by examination. Fees and processing time are outside the scope of this article.

At a Glance

Scope of Activity

• Questions on scope of work, documents you prepare and procedural steps before you delegate (Foreign Investment Promotion Act, Enforcement Decree, Enforcement Rules)
• The documents and checkpoints required on the path from investment report and registration to a D-8 application
• Out of scope: rating or ranking agents, fees, processing time, judging the likelihood of approval or registration, and any legal view on who may handle incorporation registration or tax matters (confirm with the relevant professional or authority)

Who Qualifies

• Overseas individuals who plan to set up a foreign-invested company in Korea themselves
• Employees of a foreign head office who have been assigned to set up the Korean entity
• Investors who have already filed the investment report but are unsure who prepares which documents for registration or the D-8 application
• People following the process from abroad who want to hand parts of it to a Korea-based agent or acquaintance

Required Documents

• A written scope of work by step — foreign investment report, payment guidance, incorporation registration, business registration (the VAT Act's rule is to apply within 20 days of the business start date), FIE registration, D-8 application and alien registration: ask for each item to be marked as handled or not handled
• Remittance and payment proof — the first item for registration is a copy of a foreign-currency purchase certificate or foreign-currency deposit certificate that identifies the remitter (a deposit certificate in the trade name for a sole proprietor); in-kind contributions are excluded. If the investor did not remit personally, documents proving the remittance made on the investor's behalf are needed
• Registration filing documents — besides the proof above: a completion certificate for in-kind contribution (when capital goods are contributed), the corporate registry certificate, the shareholder register (where applicable) and a copy of the business registration certificate or unique ID certificate, submitted to the commissioned institution (KOTRA or a foreign exchange bank)
• D-8 documents — the basic set is the business registration certificate, the full corporate registry certificate and the original shareholder change statement, a copy of the investment enterprise registration certificate, proof of bringing in investment funds, and proof of business results, business premises and residence. For investment under KRW 300 million, proof of how the capital was used is added
• Foreign documents and translation — documents issued abroad need an apostille or legalization by a Korean mission in that country; domestic documents are valid for 3 months from issue unless another validity period applies. Translations must be prepared by someone other than the applicant
• Authorization documents — when an agent applies for a visa issuance certificate, a power of attorney, the agent's employment certificate and the agent's ID are additionally required. Confirm who acts as the agent and how far the authorization goes
• Separating government fees from the agent's fee — the government examination fee is not refunded after acceptance (KRW 60,000 for an extension, KRW 100,000 for a change of status), so confirm in writing that it is explained separately from the agent's fee

Application Process

1. Check eligibility — confirm your current status, career, degree and contract type match the requirements.
2. Prepare documents — foreign public documents need a translator's certification plus an apostille (or consular confirmation for non-member states).
3. Book a visit — reserve a slot at your Immigration Office via HiKorea (www.hikorea.go.kr), or file online where e-Application is available.
4. File and pay — submit the Integrated Application Form (Form No. 34) and pay the screening fee.
5. Review — respond to any request for supplementary documents within the deadline.
6. Result — on approval, the period of stay and status are granted; reissue your ARC if required.

Key Points

• The Act says a foreign investor or foreign-invested enterprise must not use the investment funds for a purpose other than the one reported, or transfer or lend the FIE registration certificate to another person. Ask who holds the funds and the certificates during the engagement.
• If a person who is not an investor is registered as an officer and then applies to change status, this counts as direct hiring by the foreign-invested company and falls under Specific Activity (E-7). Ask whether the agent looks at the status link when the company structure is decided.
• For industries where foreign investment is restricted, and industries the Minister of Justice restricts for visa and stay management, granting D-8 is to be discouraged, with gambling-type businesses and karaoke-bar and entertainment-bar businesses given as examples. Ask at which step the business type is reviewed.
• VISAS KOREA (Vision Administrative Office) handles review of visa and stay documents and preparation and filing of applications on commission; its scope for foreign-invested company setup is summarized on the foreign-invested corporation setup page. It does not guarantee any approval or registration result, and the review is made by the competent authority.
• Documents issued in Korea must normally be dated within 3 months unless another validity period applies.
• Documents already on file in your alien registration record need not be resubmitted.
• Health certificates, drug test results and pre-employment medical reports must be submitted sealed by the issuing hospital (do not open).
• You must be in Korea when applying; leaving the country after filing may result in refusal.
• Screening fees are non-refundable once the application is accepted.
• The head of the Immigration Office may add or waive documents where necessary for review.

Frequently Asked Questions

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