Tax & Accounting Office Haeon

Minimum Capital Requirements for Different Business Types When Establishing a Company in Korea

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1. Minimum Capital Requirements for Different Types of Corporations Under Korean Commercial Act

① Stock Company

In the past, there was a minimum capital requirement of 50 million KRW (approximately $37,000 USD) to establish a stock company. However, this regulation was abolished in 2009 when the Korean Commercial Act was amended. Currently, the minimum capital requirement for a stock corporation is 100 KRW (approximately $0.07 USD) according to Article 329 of the Korean Commercial Act.

② Limited Company

Previously, there was a minimum capital requirement of 10 million KRW (approximately $7,400 USD). This regulation was also abolished in 2009 with the amendment of the Korean Commercial Act. Currently, the minimum capital requirement for a limited company is 100 KRW (approximately $0.07 USD) according to Article 546 of the Korean Commercial Act.

③ Limited Liability Company

The limited liability company was introduced in 2011 with the amendment of the Korean Commercial Act. Since its introduction, there has been no minimum capital requirement for this type of company.

However, considering practical aspects such as the National Tax Service's business registration review and initial expenses for company establishment, a minimum capital of 100 KRW is not recommended. If the specific business type and initial expenses are not determined, a minimum capital between 1 million KRW (approximately $740 USD) and 10 million KRW (approximately $7,400 USD) is generally recommended.

If you want to know more about types of companies in Korea, please click this link

2. Minimum Capital Requirements for Specific Business Types According to Relevant Laws

While the minimum capital requirements under the Korean Commercial Act have been abolished, certain industries still have minimum capital requirements set by their respective laws and regulations. These include financial investment businesses, construction, securities, travel agencies, and security services.

① Financial Investment Business

Financial investment businesses include activities such as investment trading, investment brokerage, collective investment, investment advisory, discretionary investment, and trust businesses. Securities firms are typical examples of this category.

The minimum capital requirements for financial investment businesses range from 100 million KRW (approximately $74,000 USD) to 50 billion KRW (approximately $37 million USD), as stipulated in the "Financial Investment Services and Capital Markets Act" (5 billion KRW or approximately $3.7 million USD for moneylending businesses).

② Construction Business

(1) General Construction Business

(2) Specialized Construction Business

Note: For corporations other than stock corporations, the contribution amount is considered as capital.

③ Travel Agency Business

The minimum capital requirements for travel agencies are specified in Table 1 of the Enforcement Decree of the Tourism Promotion Act, as follows:

Note: From July 1, 2024, to June 30, 2026, the minimum capital requirement for travel agencies registering under Article 3, Paragraph 1 will be 7.5 million KRW (approximately $5,550 USD).

④ General Liquor Wholesale Business

To ensure financial stability and operational capability, there is a minimum capital requirement for general liquor wholesale businesses.

For corporations, a minimum capital of 50 million KRW (approximately $37,000 USD) is required to obtain a general liquor wholesale license. For individuals, instead of capital, they must have assets valued at 50 million KRW or more.

⑤ Overseas Migration Agency Business

According to Article 16 of the Enforcement Decree of the Overseas Migration Act, corporations providing overseas migration agency services must have a minimum capital of 100 million KRW (approximately $74,000 USD).

Note: Only companies can register for overseas migration agency businesses, as per Article 10-2 of the Overseas Migration Act. Individual businesses and organizations are not eligible for registration.

⑥ Security Services Business

 Security services businesses, as regulated by the Security Services Industry Act, include facility security, escort security, personal protection, mechanical security, and special security services. Corporations engaging in security services must have a minimum capital of 100 million KRW (approximately $74,000 USD).

Note: Similar to overseas migration agency businesses, only companies can operate security services businesses, as per Article 3 of the Security Services Industry Act.

⑦ Worker Dispatch Business (Manpower Dispatch Business)

Worker dispatch businesses involve employing workers and dispatching them to work under the direction and supervision of client companies while maintaining the employment relationship.

 The minimum capital requirement (or asset valuation for individual businesses) for worker dispatch businesses is 100 million KRW (approximately $74,000 USD).

⑧ Electrical Construction Business

Electrical construction businesses must have a minimum capital of 150 million KRW (approximately $111,000 USD) to register, as per Article 6, Paragraph 1 of the Enforcement Decree of the Electrical Construction Business Act.

⑨ Information and Communication Construction Business

Information and communication construction businesses must have a minimum capital of 150 million KRW (approximately $111,000 USD) to register, as per Article 21, Paragraph 1 of the Enforcement Decree of the Information and Communication Construction Business Act.

⑩ Facilities-Based Telecommunications Business

Facilities-based telecommunications businesses provide services such as telephone and internet access, transmitting or receiving voice, data, and video without altering their content or form, as well as leasing telecommunications line facilities for such transmissions.

The minimum capital requirements for facilities-based telecommunications businesses range from 500 million KRW (approximately $370,000 USD) to 5 billion KRW (approximately $3.7 million USD), as stipulated in Article 8 of the Enforcement Decree of the Telecommunications Business Act.

For your information, the minimum capital requirement of 50 million KRW (approximately $37,000 USD) for real estate brokerage corporations was abolished in 2022. 

It's important to note that these requirements may be subject to change, and it's advisable to consult with Tax & Accounting Office Haeon or relevant authorities for the most up-to-date information when planning to establish a business in these sectors.

4. Why You Should Choose Tax & Accounting Office Haeon for Establishing Corporation in Korea

① One-Stop Professional Service

Tax & Accounting Office Haeon is proud member of legal group Haeon comprised of Korean lawyers and certified public accountants. We offer comprehensive services from corporation establishment to tax filing and accounting after the corporation is set up.

② Direct Communication with Korean Experts Without International Brokers

In Korea, only licensed attorneys or Beommusa Lawyer can legally represent clients in corporation establishment matters. Similarly, tax representation and accounting audits can only be performed by certified professionals such as certified public accountants(CPA).

Unlicensed brokers for Korean corporation establishment often subcontract the work to Korean professionals after accepting clients. By choosing Tax & Accounting Office Haeon, clients can work directly with Korean experts without paying excessive fees to unlicensed brokers.

③  Easy English Communication

Tax & Accounting Office Haeon has a certified public accountant who served as an English interpreter for the Korean Army, facilitating communication between U.S. and Korean forces. This ensures that even clients who don't speak Korean can receive comprehensive assistance with Korean corporation matters.

For expert consultation on establishing a company in Korea, please contact Tax & Accounting Office Haeon.

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