- A Korean company needs no minimum capital. A foreigner can register one with a few million won.
- KRW 100 million per foreign investor is needed only for foreign investment (FDI) status and for the D-8 investor visa.
- The KRW 100 million is not a fee. It is your company’s money, and the company spends it on its business.
- You can start small and increase the capital later if you decide to move to Korea.
- Without the D-8, you can still own and run the company from abroad and visit Korea for meetings.
The figure of KRW 100 million — roughly USD 70,000 — appears on almost every website about Korean company formation, including ours. Many people read it as the price of entry. It is not. It is the price of two particular benefits, and many foreign founders need neither.
This page answers one question in plain words: do you need to put KRW 100 million into your Korean company? It links to our detailed guides where you want more.
The short answer
| You want to… | Do you need KRW 100 million? |
|---|---|
| Register a Korean company | No |
| Get a business registration number and invoice customers | No |
| Open a Korean corporate bank account | No, though banks look at the business as a whole |
| Hire Korean staff | No |
| Sell on Korean marketplaces | No |
| Register the company as a foreign investment (FDI) | Yes — per foreign investor |
| Live in Korea on a D-8 investor visa | Yes — per foreign investor |
| Later move to permanent residence as an investor (F-5) | More — see our visa guide |
What KRW 100 million does and does not unlock.
Why Korea has no minimum capital
Korea abolished the minimum capital for stock companies in 2009. Today the Commercial Act only requires each share to have a par value of at least KRW 100. In theory a Jusik Hoesa (주식회사, jusik hoesa) can be formed with one share. In practice we suggest at least a few million won, because the company needs money to pay its first bills and because banks and landlords take a company with KRW 100 of capital less seriously.
The same applies to the Yuhan Hoesa (유한회사, yuhan hoesa), the Korean limited company. Our guide to Jusik Hoesa or Yuhan Hoesa explains the difference; both can start small.
Where the KRW 100 million comes from
The figure comes from the Foreign Investment Promotion Act and its enforcement decree. A foreigner’s investment counts as foreign direct investment (외국인직접투자, oegugin jikjeop tuja) only if it is at least KRW 100 million per investor and gives the investor at least 10% of the voting shares. Below that, your money is still welcome in Korea — it is simply an ordinary capital investment, reported through the bank, not an FDI.
Korean immigration then uses FDI status as the basis for the D-8 corporate investment visa (기업투자 비자, gieop tuja bija): the visa is for foreigners who manage a company in which they have made a foreign direct investment. No FDI, no D-8. That is the whole link. Our guide to the FDI minimum investment sets out the rules in detail.
KRW 100 million is the price of a visa and a status, not the price of a company.
Voixa Korea
What FDI status gives you
- The D-8 visa for an investor who manages the company — and, with it, the right to live in Korea with your family. See D-8 visa requirements.
- A legal guarantee under Article 3 of the Foreign Investment Promotion Act that you can send dividends and the proceeds of selling your shares abroad.
- A foreign investment registration certificate, which Korean banks, partners and authorities recognise.
- Access to incentives for qualifying projects — tax and cash support, mainly for high-tech and large investments.
If none of these matters to you, FDI status is optional.
The money is not lost
This is the point most people miss. The KRW 100 million is paid into your company’s bank account as share capital. It belongs to the company you own. After registration the company spends it on rent, salaries, stock, marketing — on its business. You do not pay it to the government, and you do not pay it to us.
Two conditions apply. First, the money must come from abroad, from the investor’s own account, through a Korean foreign exchange bank, so that the investment can be traced. Second, it must be used for the business: Korean immigration checks at each D-8 renewal that the investment was real and is still in the company, not quietly returned to the owner. You cannot withdraw capital as you would a loan; giving it back requires a formal capital reduction.
Starting small: what it looks like
A foreigner who does not need to live in Korea can register a Jusik Hoesa with, say, KRW 5–10 million of capital. Everything else works as normal: the company is registered with the court, receives its business registration number, opens a corporate bank account, uses a business address, invoices customers and pays Korean tax.
The owner runs it from abroad and visits Korea for meetings on a short-term visit. If the business grows and the owner wants to move, the company increases its capital to KRW 100 million or more, registers as a foreign investment, and the owner applies for the D-8. Nothing has to be started again.
| Small capital | KRW 100 million+ | |
|---|---|---|
| Company registration | Yes | Yes |
| Business number, VAT, invoices | Yes | Yes |
| Corporate bank account | Yes | Yes |
| Foreign investment registration | No | Yes |
| D-8 visa for the investor | No | Yes |
| Registration tax | Lower — based on capital | Higher — 0.4% of capital, ×3 in metropolitan Seoul |
| Can upgrade later | Yes, by a capital increase | — |
Starting small against starting with FDI status.
Costs: what changes with the capital
Our company package costs the same whatever the capital: see pricing. What changes is the Korean registration tax (등록면허세, deungnok myeonheose) under Article 28 of the Local Tax Act: 0.4% of the capital plus local education tax, tripled for new companies in metropolitan Seoul, with a small fixed minimum. On KRW 5 million the tax is close to the minimum; on KRW 100 million registered in Seoul it is a few million won. Our guide to the cost of registering a company shows the figures, and the calculator there works it out for your capital.
Common questions in one line each
- Can I invest KRW 50 million and get a D-8? No. The threshold is KRW 100 million per investor.
- Can I invest the KRW 100 million in instalments? Generally the full amount must be paid in before the D-8 application.
- Can the money come from my company abroad instead of me? Yes, for FDI status; but the D-8 is for the person who invests and manages, so the structure must fit. See Korean investor visas.
- Can I spend the capital? Yes, on the business. Keep the records — immigration asks.
- Do I need KRW 100 million for a branch or a liaison office? No. Those have no capital at all. See branch or subsidiary and liaison office.
Korean terms you will meet
Questions readers ask
Is there a minimum capital to open a company in South Korea?
No. Korea abolished the minimum capital in 2009. Each share needs a par value of at least KRW 100.
When do I need KRW 100 million?
Only for foreign investment (FDI) status and the D-8 investor visa — KRW 100 million per foreign investor, with at least 10% of the voting shares.
Do I lose the KRW 100 million?
No. It is paid into your company as share capital and is used for the company’s business.
Can I start with less and increase later?
Yes. A company can increase its capital and register as a foreign investment at any time.
Can I run a Korean company without living in Korea?
Yes. A director does not need to live in Korea. You visit for meetings on a short-term visit.
Does a branch or liaison office need KRW 100 million?
No. They have no share capital.
Alexander Baranov
Founder of the BCA Group · cross-border corporate and tax adviser since 2008
Alexander advises foreign founders and groups on company formation, tax structuring and corporate law in more than 40 jurisdictions across Europe, the Gulf, Asia and Latin America. He is the author of nine books on international business and tax and writes regularly for professional finance and tax journals. He works in English, German, Spanish and Russian.
This guide is based on the Korean statutes cited in the text and on our own filings. It is reviewed when the law or official rates change.