Business & Corporate Law
At Kang & Shin, we help foreign business owners, investors, and executives navigate Korea’s corporate legal system. Whether you are starting a company, restructuring an existing business, or managing shareholder relations, our English speaking lawyers in Korea provide practical solutions, rooted in a deep knowledge of Korean law.
We regularly assist clients with company formation, shareholder agreements, director appointments and removals, compliance issues, and corporate governance matters. Our firm also advises on cross-border transactions, business licensing, regulatory filings, and contract drafting, ensuring your business is structured for success and protected from legal risk. When court action becomes necessary, we represent clients in corporate litigation to safeguard their commercial interests and resolve disputes efficiently.
Foreign clients benefit not only from our legal expertise but also from our ability to communicate effectively in English and explain Korean procedures in a straightforward and culturally aware manner. We understand the concerns of non-Korean stakeholders and work diligently to bridge legal and language barriers, allowing you to focus on growing your business with peace of mind.
Frequently Asked Questions (FAQ)
Here are answers to frequently asked questions.
For a personalized consultation regarding your specific case, please contact us.
1. Can a foreigner start a business in Korea?
Yes. Foreigners can establish and operate a business in Korea, either as a sole proprietor or by setting up a company, such as a stock company or a limited company. Alternatively, a foreign company may opt for a branch office or a liaison office. The stock company is the most popular type of company in Korea, while the limited company offers flexibility and less stringent disclosure requirements. Branch and liaison offices are generally suited for foreign companies wishing to conduct specific activities without forming a separate domestic entity. Each option carries different implications for liability, capital, and operational scope.
2. What is a foreign-invested company in Korea?
A foreign-invested company refers to a domestic entity that has received direct investment from a foreign investor, typically meeting specific criteria outlined in the Foreign Investment Promotion Act (FIPA). Under the FIPA (as of July 2025), a foreign investment is generally recognized when the investment amount is at least KRW 100 million and the foreign investor acquires at least 10% of the voting shares in the company.
This classification is significant, as it provides access to various incentives and support measures, such as potential tax benefits, simplified administrative processes, assistance with site acquisition, and eligibility for the D-8 investment visa, all designed to attract and facilitate foreign direct investment into the Korean market. While it’s possible to establish a company with less capital or equity, such an entity would not typically receive these FIPA-related benefits.
3. What are the key corporate governance requirements for companies in Korea.
Korean corporate governance is primarily governed by the Korean Commercial Act. Key requirements include the establishment of a board of directors, the holding of general meetings of shareholders, and often an appointment of an auditor or audit committee. While privately held companies generally face more lenient regulations regarding independent directors, audit committees, and public disclosure compared to publicly traded companies, all companies must adhere to the core principles of corporate law, such as separation of ownership and control and directors’ fiduciary duties.
4. How do I remove a company director under Korean law?
A director can be removed through a special resolution passed at a shareholders’ meeting. This requires the approval of at least two-thirds of the voting shares present at the meeting and at least one-third of all issued and outstanding shares. Removal without cause is generally permitted under Korean law, providing shareholders with flexibility in board composition. However, if a director is removed before the end of their fixed term without justifiable grounds, they may have a claim against the company for damages, typically calculated based on their remaining remuneration.
5. What are the common methods for resolving commercial disputes in Korea?
Commercial disputes in Korea can be resolved through various avenues, including arbitration, mediation, and litigation in the Korean courts.
Arbitration, particularly through institutions like the Korean Commercial Arbitration Board, is often favored for cross-border disputes due to its confidentiality, enforceability of awards, and potentially faster resolution compared to traditional litigation. Including a clear dispute resolution clause in contracts is highly recommended for foreign businesses.
In urgent situations, injunctive relief (such as preliminary injunction) is also commonly used due to the relative speed at which it can be obtained compared to a full proceeding on the merits. This allows parties to quickly secure or preserve rights when time is of essence.
6. I want a consultation. What should I do?
The first step is to contact our office. Kang & Shin through our website’s Contact page, email us directly, or call our office during business hours. Once we hear from you, we’ll arrange a consultation. We offer both online and in person consultations, whichever is most convenient for you.