1. What Is a Liaison Office?
A liaison office (연락사무소) is a representative presence of a foreign company in Korea. It allows multinational corporations to maintain an operational foothold — staffed by dispatched employees — without establishing a fully incorporated Korean entity.
Key characteristics:
- Not a separate legal entity — it operates under the foreign parent company
- Cannot engage in commercial transactions or generate revenue in Korea
- Permitted activities: market research, business promotion, information relay, supplier liaison
- Must be registered with the local tax office (세무서)
Legal basis: Foreign Exchange Transactions Act (외국환거래법) Article 9; Tax law reporting requirements under the National Tax Service guidelines.
2. Liaison Office vs. Branch Office
Choosing the right structure is critical. Here is a comparison:
| Feature | Liaison Office (연락사무소) | Branch Office (지점) |
|---|---|---|
| Revenue generation | ❌ Not allowed | ✅ Allowed |
| Korean tax filing | Minimal (no revenue) | Full corporate tax |
| Registration cost | Lower | Higher |
| Dispatch visa (D-7) | ✅ Available | ✅ Available |
| Korean staff hiring | ✅ Allowed | ✅ Allowed |
3. Registration Steps
- Report to the foreign exchange bank: Submit a foreign exchange transaction report (외국환거래신고) to a designated Korean bank.
- Register with the tax office (세무서): Obtain a business registration number (사업자등록번호) — even though no taxable income is generated.
- Open a Korean bank account: Required to receive operating funds from the parent company.
- Notify relevant ministries: Depending on the industry, additional notifications to MOTIE or FSC may be required.
- Apply for dispatch visas: Dispatched foreign staff apply for D-7 visas at the Korean embassy in their home country.
4. Dispatch Visa for Dispatched Staff
Employees dispatched from the foreign parent company to the Korea liaison office require a D-7 (Intra-Company Transferee) visa, also known as the dispatch visa (파견비자).
Requirements:
- Must have worked at the parent company for at least 1 year prior to dispatch
- Dispatch must be to a Korea entity that has been in operation for at least 1 year
- Occupation must fall within allowed categories (management, specialist, technical roles)
- Salary must meet GNI-based minimum requirements
For executive-level dispatch (임원파견비자) — directors, VPs, and C-suite officers — the D-7-1 subcategory or D-8 may apply depending on ownership structure.
5. Allowed and Prohibited Activities
Allowed:
- Market research and industry analysis
- Business promotion and brand awareness
- Liaison between Korean partners/clients and headquarters
- Information collection and reporting to parent company
- Hiring Korean support staff
Prohibited:
- Signing commercial contracts in Korea
- Issuing invoices or collecting payment
- Operating as a distribution or fulfillment hub
6. Costs and Timeline
- Registration fees: KRW 50,000–200,000 (government fees only)
- Administrative consultant fee: KRW 500,000–1,500,000 for full setup support
- Timeline: 4–8 weeks total (registration 1–2 weeks + visa 2–6 weeks)
7. Ongoing Compliance
- Annual report to the tax office confirming non-revenue status
- Renew D-7 dispatch visas before expiry (typically annually)
- Notify the tax office of changes to the representative or office address
- Maintain records of all operating funds received from the parent company
Liaison Office Setup + Dispatch Visa — Full Service
We handle the full liaison office registration process and D-7 dispatch visa applications. Consultation in Korean, English, Chinese, and Japanese.
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