Author Archives: koreantaxexpert

Company set-up in Korea #2 Company types in Korea for foreign investment

Foreign investments will fall into certain type of business in Korea. Mostly, foreigners can start Korean business by acquiring new or existing stocks, or by establishing a Korean branch or liaison office in Korea. Governing laws are different for the cases. A FDI (Foreign Direct Invested) company is a domestic corporation established under the Commercial […]

Hiring Koreans Without Entity in Korea – Class B Employment

Can foreigners hire Korean employees remotely? Yes, any foreigners or foreign companies can hire Korean national employees from overseas. Many foreigners or foreign companies I’ve met are worried about the Korean labor environment and hesitate to set up a company in Korea. For certain cases, Koreans can be directly employed by any foreigners and work […]

Company set-up in Korea #1 Definition of Foreign Direct Investment (FDI)

Foreign Direct Investment (FDI) is defined as an investment with an investment threshold contributed by foreigners amounting to at least KRW 100 million (approx. USD 75,000.00). Types of FDI include the acquisition of stocks of domestic companies, long-term loans (five or more years) from parent companies outside Korea, and investments in non-profit corporations in the […]

Not VAT Deductible Purchases for Businesses in Korea

The Korean VAT Laws specify certain purchases are not deducible (10% VAT not refundable) for the companies. For example, VAT payments on following purchases are not refundable: Books, medical expenses, fuels, parking, car maintenance fees, leisure expense such as golf, etc., luxury item purchases, public transportation expenses, tickets (i.e., movies), beauty shops, etc.   References: […]

Korea’s 4 Social Insurance Rates for 2022

There’re 4 major social securities in Korea: 1) national pension, 2) national health insurance and long-term care insurance, 3) employment insurance and 4) workers’ compensation insurance. Each year, some of the insurance rates are increased or adjusted. Item Employee Employer TOTAL RATE Expected Monthly Contribution (TTL) Note Case 1. Monthly salary 6,000,000 won Case 2. […]

Financial Review Services

Sometimes we are asked for financial review from our clients. Unlike audit, review requires much simpler procedures and could take less time than the audit. A review includes primarily applying analytical procedures to management’s financial data. You may expect that a CPA review will address if the financial data are free from any material misstatements. […]

Korea’s 4 Social Insurance Rates for 2021

There’re 4 major social securities in Korea: 1) national pension, 2) national health insurance and long-term care insurance, 3) employment insurance and 4) workers’ compensation insurance. Each year, some of the insurance rates are increased or adjusted. Especially, rates for national health insurance and long-term care insurance are increased every year. During covid-19 season in […]

Global Mobility Services (GMS)

We see many companies face employment issues especially in relation to international assignment programs. With many years of experience in GMS field, we proudly offer tax strategies and advisory services that can help international assignment program in a cost efficient manner. How we can assist you I. Foreign employees assigned to Korea by foreign companies […]