| Foreign-Invested Company | Domestic Branch of a Foreign Company | |
| Governing law | Foreign Investment Promotion Act | Foreign Exchange Transactions Act |
| Corporation type | Domestic corporation | Foreign corporation |
| Identity | The foreign investor and foreign-invested company are separate entities (independent accounting & settlement). | The head office and branch are a single entity (consolidated accounting & settlement). |
| Delegated agency to process notifications and grant permits | Invest KOREA, KOTRA’s overseas offices (investment KBCs), head office and branches of foreign exchange banks in Korea (notification only) | Branches of foreign exchange banks in Korea (notification), Ministry of Strategy and Finance (business permit for financial businesses, etc.) |
| Min. (Max.) investment amount | Min.: KRW 100 million Max.: No limitation | No limitation |
| Corporate tax rate | Tax obligation is applied to all profit generated domestically and overseas. Up to KRW 200 mil.: 10% More than KRW 200 mil. and not more than KRW 20 bil.: 20% More than KRW 20 bil.: 22% | Tax obligation is applied only to domestically sourced income. Up to KRW 200 mil.: 10% More than KRW 200 mil. and not more than KRW 20 bil.: 20% More than KRW 20 bil.: 22% Branch tax is imposed on the branch of companies from France, Australia, Canada, etc. |
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One-Stop Korea Tax and Business Services 