As of May 1, 2024, we are thrilled to announce the formation of STAR GROUP through our collaboration with STAR LAW FIRM. Our core mission is to provide comprehensive assistance to foreign clients navigating legal and tax matters in Korea, drawing on our extensive and diverse expertise. Over the years, we have observed numerous crises […]
In Korea, every business must possess an e-certificate (공인인증서). This electronic identification is essential for interactions with governmental websites, banks, and other entities for company registration verifications. Typically, the bank provides the e-certificate when a company opens a bank account. Below, we’ll explain how to download (you first need to “import” the e-certificate into your […]
In Korea, the use of electronic signatures is not yet widespread. Instead, it is common practice to rely on a corporate seal registered (법인인감) with the court for various transactions, including the drafting of important contracts and visits to financial institutions. When utilizing a corporate seal, you will be requested to bring the most […]
Today, we’re breaking down the process of setting up a company in Korea, tailored specifically for foreigners or foreign-invested entities. With over 15 years of experience, we’ve crafted this guide to be straightforward and accessible, ensuring it’s easy to follow and helpful for you. 1. Choose Your Company Type: Select a Limited Liability […]
Closing a business in Korea, whether it’s a domestic corporation (including a LLC) or a foreign branch office, involves several legal and administrative steps. Below is an outline of the corporate dissolution and liquidation process in South Korea, highlighting key steps and requirements. Board Resolution: The initial step in the dissolution process is for the […]
Korea’s 4 Major Insurances stand out distinctly from those of other countries, presenting numerous distinctive features. In this article, we aim to delve into the specifics of the Korean National Health Insurance within the 4 Major Insurances, highlighting its unique aspects. I. Brief Introduction of Korean National Health Insurance for Employees Mandatory Enrollment and National […]
In the dynamic world of global business, cross-border mobility of employees has become a norm. Many companies send their employees abroad on assignments, and South Korea is no exception. For foreign employees stationed in Korea, one common practice is the adoption of NET payment contracts. Let’s delve into the concept of NET payment contracts and […]
In South Korea, companies are required to undergo external audits to enhance transparency and ensure responsible management practices. External audits involve an independent review of a company’s financial condition and operational activities, with the audit report prepared in accordance with the External Audit Act. This blog explores the criteria for companies subject to external audit […]
Introduction: Foreign Direct Investment (FDI) plays a pivotal role in fueling South Korea’s economic growth and development. In recent years, the Korean government has actively promoted and facilitated FDI to attract foreign capital and expertise. Whether you are considering investing in South Korea or establishing a business here, understanding the FDI regulations is paramount. This […]
Introduction: In South Korea, the tax settlement process for resigned employees involves several important steps. While specific details may vary, for the purpose of this blog, let’s assume that the employee’s salary and bonuses have been finalized. This article will cover the key aspects of the tax settlement process that every resigning employee should be […]
I have been working as a USCPA in Korea for over 15 years, primarily assisting foreign companies looking to start businesses in Korea. After assisting with the establishment of their corporations, I provide advisory services and various compliance services, including tax reporting within Korea. I would like to offer some brief advice on a few […]
In Korea, there are strict regulations regarding the payment of severance pay when an employee leaves after a certain period of employment. Severance pay is generally calculated as 30 days of average wages for employees who have worked for one year or more. While this concept is familiar to most employees in Korea, foreign companies […]
When processing employee termination in Korea, there are several essential steps that need to be confirmed and followed. Sometimes, there are processes specific to Korea that may be unfamiliar to foreigners or foreign companies. Please note the following: Notice Period: Verify the notice period required for employee termination according to the Employment Contract (“EC”). This […]
VAT Korea Refund In the global economy, international trade in goods & services have expanded to become essential to daily life. It has become common to make purchases and use popular global apps in South Korea. However, such goods or services from overseas suppliers do not include VAT, which creates an unequal playing field for […]
A tax is imposed on net taxable income in Korea by the district tax office, and cities (or “gu” for large cities). In Korea, a tax payable to the district tax office is called “income” tax (소득세). A tax payable to cities is called “resident” tax (지방세). For most of cases, 10% resident tax will […]