Foreign investment can be made in two ways. You may open a Korean branch of your company overseas or establish a foreign-invested company. The major difference lies in whether the registered capital is injected or not, which also affects whether dividends are paid or not. The earnings and losses are incorporated into those of its headquarters for a Korean branch, however, when it comes to a foreign-invested company, remittance can be made to its headquarters only when there is a separate resolution on dividend payment.
  The Koran branch of a foreign corporate has the same corporate tax liabilities for its business in Korea as Korean domestic companies. In addition to that, it is also obliged to pay VAT in South Korea.
  Consider the outlook of your business including its size and how it will be performed to determine the type of investment: a Korean branch, or a foreign-investment company. If you decide to establish a foreign-invested company, the initial amount of investment and shareholding structure will be determined, taking into account various factors including the size of business.