Establishment Procedures of Branch and Liaison Office of Foreign Corporation
In case a non-resident foreign corporation or private enterprise wants to establish and run branch or liaison office in Korea, they should file a report according to the article 9-33 of the Foreign Exchange Transactions Act.
Non-resident offices located in Korea are divided into two categories.
It conducts business activities in the Republic of Korea and generates revenue
ü Liaison Office
It doesn’t conduct business activities in the Republic of Korea and generate revenue, but performs non-business functions, such as business contacts, market research, research and development, etc.
Filing a Report of Korean Office of Foreign Corporation
If a non-resident is installing office with one of the following purposes, he/she needs to file a report to the minister of economy and finance:
1. Capital related businesses except banking business including loan of funds, arrangement and brokerage of overseas finance, credit card business, installment financing, etc.
2. Business related to securities and insurance,
3. Other businesses that are not allowed by regulations, such as Foreign Investment Promotion Act.