Business Information

Establishing a foreign-invested company

For foreigners who invest 100 million won or more for the purpose of participating in management and acquire at least 10% of voting shares.

1. Foreign-investment report (KOTRA or a foreign-exchange bank)
2. Remit the investment funds (temporary account at a foreign-exchange bank)
3. Company incorporation registration (court)
4. Industry-specific licenses and permits
5. Incorporation report and business registration (tax office)
6. Foreign-invested company registration - within 60 days of completing the investment; a fine applies if not registered

Basis - Foreign Investment Promotion Act Arts. 5 and 21; Enforcement Decree Arts. 6 and 27

Incorporation and business registration

You follow the same Commercial Act procedure as Korean nationals, with a foreign-investment report before and a foreign-invested company registration after.

• In practice most are stock companies, but a limited company is also an option
• Draft articles -> promoters/board meeting -> pay in capital (under 1 billion won, a balance certificate may substitute)
• Incorporation registration can use the Supreme Court Internet Registry e-form
• Business registration within 20 days of starting business; apply online via Hometax
• Restaurants, academies, and the like need separate licenses from the district office or education office

Foreign-investment report

A preliminary step done before paying in the actual investment; submit the report to KOTRA or a foreign-exchange bank.

• Documents - 2 copies of the report, proof of nationality, and a power of attorney (if filing by proxy)
• After the report is accepted, remit the funds to a temporary account at a foreign-exchange bank
• If bringing foreign currency in directly, declare it at customs and receive a foreign-exchange declaration certificate
• The report is not legally binding; if plans change you can file a change report

Administrative steps for running the business

Even after incorporation, step-by-step administration continues - licenses, the four social insurances, opening accounts, and more.

• Industry licenses - e.g., restaurants (food-hygiene business report), academies (academy establishment registration)
• After opening a corporate account, transfer the temporary-account balance to the new company account
• Four-insurance establishment report - file all at once online at the Four Social Insurance portal (www.4insure.or.kr)
• When drawing up contracts, pay stamp tax (electronic revenue stamp) based on the contract amount

Investment incentives and subsidies

Incentives come in several types - tax reductions, cash grants, and local-investment promotion subsidies.

• Cash grant - via new-share acquisition with a foreign-investment ratio of 30%+; for advanced strategic technology the ceiling rises to up to 50%
• Local-investment promotion subsidy - for new or expanded investment outside the capital region, up to 20 billion won per firm, with a 4-45% equipment subsidy
• Exemption from customs duty, individual consumption tax, and VAT on capital goods (if the business qualifies)
• Apply - Ministry of Economy and Finance, International Economy Division 044-215-7621 / consult KOTRA or the Gyeongsangbuk-do Investment Office in advance

Startup and investment programs

Pohang Technopark and the Gyeongbuk Content Business Support Center post startup-incubation and commercialization programs year-round.

• Pohang Technopark - incubation-center tenancy (up to 7 years), one-person creative-business center, and graduate-firm support (up to 5 million won per firm)
• Gyeongbuk Content Business Support Center - tenancy for content firms (2 years base, up to 5), plus talent development and commercialization
• Search integrated government support programs at Bizinfo (www.bizinfo.go.kr)

Tax support

Apart from national-tax reductions, local-tax (acquisition and property tax) reductions and local-investment tax benefits are available.

• If the business qualifies (e.g., new-growth-engine technology), it may receive corporate, income, acquisition, and property tax reductions
• Business-use property may be reduced under the Restriction of Special Local Taxation Act and similar laws
• Refer to the NTS guide for foreign corporations and foreign-invested companies, then apply at your competent tax office
• For local-tax reductions, ask the tax division of the city/county/district office where your business is located

Pohang industrial complexes

The complex you can move into depends on your industry, so check in advance.

• Pohang Steel Industrial Complex - steel-related industries (www.phsic.or.kr)
• Pohang Blue Valley National Industrial Complex - Donghae-myeon, Nam-gu, run by Gyeongbuk Technopark (054-292-2627)
• Yeongilman Port Hinterland Industrial Complex - Heunghae-eup, Buk-gu
• Pohang Technopark - 394 Jigok-ro, Nam-gu, a hub for regional strategic industries (054-223-2114)

Office space and co-working

Business-incubation centers run by local universities and institutions offer office space at low rent.

• Incubation centers - Pohang University, Handong, Uiduk, Sunlin, and the RIST Incubation Center (co-working space and conference rooms)
• Gyeongbuk Content Business Support Center - 33 Daesin-ro, Buk-gu; free meeting rooms, shared lounge, and internet
• Gyeongbuk Technopark Blue Valley building - rent around 10,950 won/sqm (management fee included; subject to change)
• Pohang University Incubation Center 054-245-1042~3

Lease and move-in process

Procedures and documents differ by facility type, so confirm with the operating organization in advance.

1. Check the announcement
2. Apply to move in (submit a business plan, business registration certificate, etc.)
3. Document and presentation review
4. Sign the tenancy contract
5. Pay rent and management fees, then move in

Public support facilities usually run in 1-2 year terms with an annual extension review. Moving in often requires transferring your business-registration address.

Hiring local talent

Pohang and Gyeongsangbuk-do subsidize labor costs for firms that hire young people.

• Pohang Youth Job Activation program - for hiring youth aged 19-39, 1.6 million won per person per month for up to 10 months (up to 16 million won), extendable up to 2 years if employment is maintained
• Youth Job Leap Incentive - up to 12 million won over up to 24 months (apply via Worknet or an employment center)
• Pohang Center for Creative Economy & Innovation Job Zone - matches workforce demand with young job seekers
• Pohang City Hall, Jobs & Youth Division 054-270-2834

Employment Permit System (EPS)

A system letting workplaces that could not hire despite efforts to recruit Koreans legally hire non-professional foreign workers (E-9).

1. Post a Korean-worker job opening on Worknet (as a rule 14 days for manufacturing/construction/services, 7 days for farming/livestock/fishing)
2. If no one is hired, apply to your employment center for a foreign-employment permit (within 3 months after the recruitment period)
3. HRD Korea provides a roster of job seekers
4. Select a suitable candidate via the EPS website or by visiting an employment center
5. Sign a standard labor contract -> apply for a visa-issuance certificate
6. Begin work after entry and completing employment training

You must check workplace disqualifiers such as a history of unpaid wages or no industrial-accident insurance. www.eps.go.kr

Hiring-support organizations

You can use comprehensive job-support services - job matching, hiring incentives, and vocational training.

• Pohang Employment Center - job-opening/job-seeking registration and hiring-incentive consultation and applications (054-280-3000)
• Worknet - search nationwide job listings and post openings (www.work.go.kr)
• Employment 24 - apply online for various hiring incentives
• Labor Ministry Call Center 1350 · Migrant Worker Support Center 1644-0644

KOTRA Invest Korea

A national investment-promotion agency established under Article 15 of the Foreign Investment Promotion Act.

• One-stop support from investment consulting, reporting, and incorporation to resolving management difficulties
• Operates a Foreign Investment Ombudsman system
• 1600-7119 · www.investkorea.org

Pohang and Gyeongsangbuk-do investment offices

They oversee administration for attracting investment and for company tenancy and incentives.

• Pohang City Hall, Investment Company Support Division 054-270-3862
• Gyeongsangbuk-do Investment Office - investment incentives, administrative services, and issue monitoring (www.gb.go.kr)
• Pohang City Hall main line 054-270-8282 (booking recommended)

Interpretation and administrative support

Pohang runs three migrant-worker counseling centers - Nam-gu, Buk-gu, and the women’s center.

• Labor and industrial-accident counseling, interpretation, and daily-life mediation (run separately by area and gender, so check jurisdiction)
• Multicultural Family Support Center (Danuri) - Korean classes, interpretation/translation, and life counseling (liveinkorea.kr)
• Foreigner Information Center 1345 - multilingual phone counseling on residence and administration
• Pohang Buk-gu Migrant Worker Counseling Center - 97 Uchangdong-ro, Buk-gu, Pohang

Legal, tax, and labor consulting

Free expert consultations are available with lawyers, tax accountants, labor attorneys, and management consultants.

• Pohang Chamber of Commerce Business Support Group consulting room - External Relations Team 054-270-1223 (book by phone)
• Ministry of Justice 9988 SME Legal Support Group - free legal aid (www.9988law.com)
• SME&Startup 24 Business Support Group - 12 fields including legal, tax/accounting, and HR/labor (1357, www.smes.go.kr)

D-8 / D-9 / E-7 residence statuses

Residence status depends on your type of work, and each has different requirements for investment, salary, and occupation.

• D-8 corporate investment - individual investors invest 100 million won+, while dispatched staff prove status with employment and dispatch certificates
• D-9 trade management - running or managing a trading business or a domestic for-profit business (requirements such as trade records vary)
• E-7 specific activities - 87 designated occupations, with type-specific minimum salaries (e.g., E-7-1 about 31.12 million won as of 2026) and a foreign-hire ratio usually capped at 20%
• D-8 and E-7 are sometimes not handled online, so check in advance whether you must apply in person

Inviting and hiring foreign staff

The general process for inviting overseas staff into Korea and employing them.

1. The inviting company in Korea applies to its immigration office for a visa-issuance certificate.
2. After review, submit the issued certificate to the Korean embassy in that country to receive the visa.
3. If staying more than 90 days after entry, complete foreigner registration within 90 days of arrival.

Once employment begins, minimum wage and overtime pay apply the same as for Korean nationals, and discriminatory treatment is prohibited.

Extending your stay and changing status

Missing the deadline counts as overstaying, so you must apply before expiry.

• When to apply - from 4 months before expiry (varies by status) until the expiry day (online, until the day before expiry)
• E-7 - from 4 months to 1 day before expiry; 60-30 days before is recommended; no limit on renewals
• Some statuses such as D-8, D-3, and E-7 may require an in-person visit to the immigration office
• Common documents - integrated application, passport, residence card, and proof of address

How to apply and inquiries

Check the documents required for each status in the Hi Korea guide manual.

• Sign up at Hi Korea (www.hikorea.go.kr) and file online
• If a visit is needed, book ahead via the Hi Korea visit-reservation system
• Foreigner Information Center 1345
• Look up the immigration office for the Pohang area on Hi Korea

Salary and occupation standards are revised by notice each year, so recheck the latest rules before applying.