What Is an FDI Company in Korea?
Foreign Direct Investment (FDI) in Korea is governed by the Foreign Investment Promotion Act (외국인투자촉진법). When a foreign national invests at least KRW 100 million into a Korean company and registers the investment with KOTRA (Korea Trade-Investment Promotion Agency), the company qualifies as an FDI-registered company and the investor can obtain a D-8 (기업투자) investor visa.
FDI-registered companies enjoy certain benefits: streamlined government support, access to foreign investment zones (외국인투자지역), and the legal foundation for the D-8 investor visa. They are subject to the same corporate tax, VAT, and labor law requirements as domestic Korean companies.
Key Requirements & Thresholds
| Requirement | Standard | Notes |
|---|---|---|
| Minimum investment | KRW 100,000,000 | Must come from overseas (foreign wire) |
| Minimum share ownership | 10% of issued shares OR KRW 50M+ | Either threshold qualifies |
| Investment source | From outside Korea | Foreign exchange purchase certificate required |
| Business type | Most industries allowed | Restricted industries: broadcasting, publishing, rice farming, etc. |
| Korean co-investor | Not required | 100% foreign ownership permitted |
| Minimum company age | No minimum | New companies can register from Day 1 |
Corporate Structure Options
Korea offers several corporate forms for FDI companies. The two most common are:
주식회사 (Jusik-hoesa) — Joint-Stock Company (similar to Corp/Ltd)
- Most common form for medium-to-large foreign investments
- Issues transferable shares; suitable for multi-investor structures
- Minimum directors: 1 (sole director possible for small companies)
- Requires a statutory auditor if assets exceed KRW 5B or capital exceeds KRW 1B
- Annual shareholder meetings required
유한회사 (Yuhan-hoesa) — Limited Liability Company
- Preferred for small single-investor FDI setups
- Simpler governance: no share certificate requirements, fewer formalities
- Maximum 50 members (investors)
- Cannot list on a stock exchange
- No statutory auditor required unless assets exceed KRW 5B
Step-by-Step Setup Process
- Prepare overseas documents — Gather passport, home-country ID or business registration (if investing as a company), notarized personal statement, and source-of-funds evidence.
- Open a Korean bank account (pre-incorporation) — Open a temporary corporate bank account at a Korean bank using a "pre-incorporation deposit" arrangement (법인설립 전 외화입금). Deposit the minimum KRW 100M from overseas. Obtain the foreign wire transfer certificate (외국환매입증명서).
- Register with KOTRA (FDI notification) — Submit the FDI notification to KOTRA before or at the time of incorporation. KOTRA issues the FDI Registration Certificate (외국인투자등록증). Processing: 3–5 business days.
- Draft articles of incorporation — Prepare the Korean articles of incorporation (정관) specifying company name, purpose, capital, share structure, and director information. An attorney or certified judicial scrivener (법무사) is typically engaged for this step.
- Register incorporation with the court (Commercial Registry) — File at the local District Court Registry. The court issues the Corporate Registration Certificate (법인등기부등본). Processing: 5–10 business days.
- Register for taxes (Business Registration Certificate) — Submit the business registration application to the local NTS tax office within 20 days of starting business. Receive the Business Registration Certificate (사업자등록증).
- Open official corporate bank accounts — Transfer the FDI capital from the pre-incorporation account to the official corporate accounts. Keep the foreign wire transfer certificate for KOTRA records.
- Apply for D-8 investor visa — Once KOTRA FDI registration and corporate registration are complete, apply for D-8 at the Korean embassy abroad or change status inside Korea at the immigration office.
Required Documents
For KOTRA FDI Registration
| Document | Notes |
|---|---|
| FDI notification form (외국인투자신고서) | KOTRA form; available online or at KOTRA offices |
| Investor's passport copy | Or corporate registration if investor is a company |
| Foreign wire transfer certificate | Issued by Korean bank confirming overseas remittance |
| Corporate registration certificate (after incorporation) | Or draft articles of incorporation before incorporation |
For Court Incorporation
| Document | Notes |
|---|---|
| Articles of incorporation (정관) | Drafted and notarized by a certified legal professional |
| Investor's identification | Passport + apostilled signature specimen |
| Director acceptance letter | If the director is a different person from the investor |
| Office lease agreement | Registered business address in Korea |
| Capital deposit proof | Bank statement confirming the KRW 100M+ deposit |
| Registration tax payment receipt | 0.4% of capital (min KRW 112,500) |
D-8 Investor Visa
The D-8 (기업투자) visa is issued to foreign nationals who have made a qualifying FDI in a Korean company and are actively managing or working in that company. It is tied to the specific investment and company.
D-8 Eligibility
- Investment of at least KRW 100 million from overseas sources
- Investor holds at least 10% of issued shares (or KRW 50M+ in value)
- KOTRA FDI Registration Certificate issued
- Applicant will be working in Korea at the invested company (not a passive investor)
D-8 Required Documents
| Document | Notes |
|---|---|
| Passport (6+ months validity) | |
| KOTRA FDI Registration Certificate | 외국인투자기업등록증 |
| Corporate registration certificate | 법인등기부등본 (issued within 3 months) |
| Business registration certificate | 사업자등록증 |
| Foreign wire transfer certificate | 외국환매입증명서 from the Korean bank |
| Company financial statements or business plan | For new companies: business plan; for existing: last year's accounts |
| Visa application form + photos |
D-8 Duration and Renewal
D-8 is initially issued for 1–2 years and is renewable as long as the company remains operational and FDI-registered. At renewal, immigration officers review the company's activity level — a company with no revenue and no employees after 2 years may face closer scrutiny. Keeping financial records and demonstrating genuine business activity is important for renewal.
Frequently Asked Questions
What is the minimum investment required to set up an FDI company in Korea?
The minimum is KRW 100 million (~USD 75,000), remitted from overseas into the Korean corporate bank account and documented with a foreign wire transfer certificate. The investor must hold at least 10% of shares or KRW 50 million worth.
Can one person own 100% of a Korean company?
Yes. A foreign national can own 100% of a Korean limited company. Korea has no requirement for a Korean co-investor or local director. The sole foreign shareholder can also serve as the sole representative director.
How long does it take to set up an FDI company in Korea?
The full process from document preparation to D-8 visa issuance takes approximately 6–12 weeks: KOTRA registration 3–5 days, court incorporation 5–10 days, tax registration 2–5 days, capital remittance and FDI certificate 1–2 weeks, and D-8 visa processing 2–4 weeks.
Do I need a Korean address to register an FDI company?
Yes. A physical Korean business address is required for both KOTRA registration and corporate court registration. Shared office spaces, virtual offices, and commercial leases are all acceptable.
What is the D-8 visa and who qualifies?
The D-8 is the investor/executive visa for foreign nationals who have invested at least KRW 100 million in a KOTRA-registered FDI company and hold at least 10% of shares. It allows unlimited work at the invested company.
Can an FDI company sponsor other foreign employees?
Yes. An FDI-registered Korean company can sponsor foreign employees for work visas such as E-7 or D-7. Each employee must independently qualify for their visa; FDI registration alone does not guarantee approval for additional staff.
