Can foreigners start a business in Korea? 🇰🇷
→ Many people want to start a business in Korea, but often don’t know where to begin
→ In this article, we explain Korea’s startup visa (D-8) in a clear and easy-to-understand way
→ To apply for a startup visa, a minimum investment of KRW 100 million (about $68,966) is generally required
Seoul offers a strong business environment for foreign entrepreneurs starting a company in Korea
●●🟧 Korea’s Startup Visa (D-8) (Investment Visa)
●🟦✓ What is Korea’s startup visa?
▶ If you are a foreign national planning to directly operate a business in Korea, your application may be considered
▶ It can be applied to a wide range of fields, including IT, tech-based startups, platforms, trade, import/export, and distribution
▶ It can also be pursued by establishing a corporation or branch in Korea and operating the business through that structure
●🟦✓ Features of the startup visa
▶ If certain conditions are met, you can invite your spouse and minor children, and your family can live and study in Korea
▶ You can receive a salary from the corporation you established, but employment at another company is restricted
▶ The investment funds are managed as corporate funds and must be used for business purposes
▶ The purpose of the startup visa is not simply to obtain a visa, but to actually operate a business
▶ The actual business structure is very important, including the business plan, revenue model, transaction methods, and tax filing
▶ In particular, whether revenue is generated and whether the business is sustainable can have a significant impact on visa renewal
💊 “Maintaining the business” is more important than “obtaining the visa”
▶ The startup visa (D-8) is usually granted for a stay period of about 6 months to 1 year, and it can be renewed afterward
▶ Renewal is not based solely on the investment amount, but on whether the business is actually being operated
▶ Revenue, tax filing, transaction records, and business continuity are the main criteria
▶ Even without employees, the business can be maintained as a one-person operation
💊 Ultimately, the most important factor is whether the business is actually being operated
▶ People who want to establish a company in Korea and directly operate a business
▶ People preparing a business with a clear revenue model, such as trade, import/export, or online sales
▶ Overseas companies or business owners that need a local corporation or branch to enter the Korean market
▶ Business owners who are already operating a business in their home country and want to expand into Korea
▶ People who want to operate a digital-based business in a company structure, such as IT, content, platforms, or online services
▶ People who want to stay in Korea long term and build a stable business foundation
▶ In general, the process follows this order: foreign investment notification → remittance of investment funds → company incorporation → business registration → registration as a foreign-invested company → visa application
▶ During the company incorporation and business registration stages, a business address is required, and it is common to use a shared office
▶ After that, the process continues through registration as a foreign-invested company and visa application, leading to the issuance of a Foreigner Registration Card
▶ It is common to start with a shared office in the early stages and then change it as the business expands
▶ If you change the business address after company incorporation, a cost of about KRW 200,000 to 300,000 (about $138 to $207) may be incurred (change of corporate business address)
▶ After the Foreigner Registration Card is issued, you can enroll in health insurance, open a personal bank account, and receive a debit card
▶ If you lease a store such as a restaurant or café, that location is registered as the business address on the business registration certificate
💊 Many people find the initial settlement process challenging, including choosing a business location, establishing a corporation, completing the visa application process (submitting documents to government offices), securing housing (renting a home), and purchasing a vehicle
Q. Is a business location required to apply for a startup visa?
→ Yes, a business location (address) is required
→ In the case of Korean nationals, it may be possible to register a home address as a business address for certain industries, but for a foreigner’s startup visa (D-8), an actual business location is required
→ A business address is required for company incorporation and business registration, and it is used to confirm whether the structure allows for actual business operations
→ However, a large office is not required, and it is also common to proceed using a shared office or a virtual office
→ What matters is not the size of the office, but having a structure that allows the business to operate in practice, rather than just having an address
Q. Does the startup visa approval rate differ depending on the applicant’s country of origin?
→ Officially, applications are reviewed under the same standards without discrimination based on the applicant’s country of origin
→ However, in practice, factors such as the realism of the business plan, the source of funds, and the feasibility of business operations are carefully evaluated, and results may vary depending on these factors
→ For some countries, the process of verifying funds or documents may be more strict, which can make the preparation process feel more difficult
💊 Investment funds are not just a basic requirement, but an important factor that reduces overall review risk, and depending on the level of preparation, a higher investment amount may increase the chances of approval for applicants from countries where approval is more challenging
Q. Do I have to pay a fee to the Bank of Korea when applying for a startup visa?
→ No, applying for a startup visa itself does not require any fee to the Bank of Korea
→ In Korea, banks generally offer services such as opening and maintaining accounts and issuing debit cards free of charge, and both corporate and personal accounts can be opened
→ However, when transferring investment funds from overseas to Korea, wire transfer fees and currency exchange fees may apply
→ In addition, when the investment funds are deposited, foreign exchange reporting and verification procedures may be required, but these are administrative procedures, not fees
💊 These are not visa fees, but simply bank-related fees that occur during the fund transfer process
Q. Can a passenger vehicle be purchased as a company expense?
→ Yes, it can
→ In the case of trucks, VAT refunds are available, but for passenger vehicles, VAT (10%) refunds do not apply, just as they do not for Korean business owners
→ If a vehicle is purchased under the corporation’s name or used through leasing or rental, the purchase cost, fuel expenses, insurance premiums, and maintenance costs can be treated as corporate expenses
→ However, the vehicle must be used for business purposes, and if used for personal purposes, expense recognition may be limited
→ Vehicle-related costs may include the following
Acquisition tax of about 7% at the time of purchase (based on the vehicle price)
Automobile tax of about KRW 700,000 per year (about $483, based on 3,000cc, and may vary depending on engine size and model year)
Insurance premiums of about KRW 1 million per year (about $690, depending on the vehicle price and conditions)
💊 For a corporate vehicle, the key factor is not the purchase itself, but whether it is used for business purposes
→ Overall, car-related costs in Korea tend to be higher than in the U.S. and Japan, and while it varies by country in Europe, maintenance costs are generally relatively high
→ Vehicle prices are often lower in the U.S. and Japan, and in Korea, Hyundai and Kia vehicles are relatively affordable, but imported vehicles tend to be priced higher
→ Automobile tax in Korea is based on engine displacement, so larger vehicles can result in higher costs, while Europe uses environmental standards (CO₂), and Japan has a relatively lower tax structure
→ Insurance premiums in Korea are often higher for foreign nationals at the initial stage, which can make them feel more expensive than in the U.S. and Japan, and even higher than in some European countries
→ Fuel costs are lowest in the U.S., while Korea and Japan are at a similar or slightly higher level, and in Europe, they can be higher than in Korea depending on the country
💊 Public transportation and highway usage in Korea are relatively affordable, but overall vehicle-related maintenance costs (taxes, insurance, fuel, etc.) may still feel higher
▶ You can find essential administrative procedures after entering Korea, such as foreigner registration, opening a bank account, and getting a mobile phone plan in the article below
Korea Entry and Settlement Guide (2026) | Part 3: Required Administrative Steps After Arrival
→ Please refer to the article below for information on how to find housing in Korea and how the housing system works
Complete Guide to Housing in Korea for International Students (2026)
→ You can find detailed information about Korea’s public transportation system, including how to use buses, subways, KTX, taxis, and apps in the article below
Korea Public Transportation Guide 1-1 – Basics of Subway, Transfers, and the T-Money Card
▶ A more detailed guide for business owners and long-term residents will be provided in a future post
▶ In the next article, we will explain in detail the types of businesses that are good to start in Korea, how to file taxes, how to hire employees, how to find an office, and which areas are suitable for business and living