| Category |
Foreign-Invested Company |
Domestic Branch of a Foreign Company |
| Act |
Foreign Investment Promotion Act |
Foreign Exchange Transactions Act |
| Corporation Type |
Domestic corporation |
Foreign corporation |
| Identity |
Foreign investors and foreign-invested companies are of separate entities (independent accounting & settlement) |
Headquarters and branches are of a single entity (the same accounting & settlement) |
| Delegated agency to process report and grant permission |
Invest KOREA (KOTRA) or headquarters of a foreign exchange bank |
Branches of a foreign exchange bank (report), the Ministry of Strategy and Finance (permission of financial business etc.) |
| Minimum (Maximum) Investment Amount |
100 million won or more per case, no upper limit |
No limit in investment amount |
| Scope of Tax Obligations |
Tax obligations for all domestic and overseas income
Corporate tax rate:
10% for 200 million won or less, 20% for over KRW 200 million(22% by 2011) |
Tax obligations for income from domestic sources only
Corporate tax rate:
10% for 200 million won or less, 22% for over 200 million won
In some cases, branch tax shall be paid. |
