- Four routes in: a Korean importer, a liaison office, a branch of the Italian company under Article 614 of the Commercial Act, or a Korean subsidiary — a Jusik Hoesa or, for family businesses, a Yuhan Hoesa.
- Italian corporate documents — visura camerale, atto costitutivo e statuto, delibera, procura — are notarised where needed and apostilled by the Procura della Repubblica or the Prefettura. No Korean consulate step.
- Under the EU–Korea FTA, Italian goods enter Korea largely duty-free with a statement on origin; above EUR 6,000 per consignment the exporter must be an esportatore autorizzato.
- The Italy–Korea tax treaty caps Korean withholding on dividends at 10% for holdings of 25% or more (15% otherwise), and on interest and royalties at 10%.
- In Italy, 95% of a Korean dividend is normally exempt under Article 89 TUIR — so Korean withholding is largely a final cost. Watch the low-tax tests for small, profitable Korean subsidiaries.
Italian companies reach Korea along familiar paths. A producer in Emilia sells cheese through a Seoul importer and wants control of the brand; a Veneto machinery maker follows its Korean customers’ new plants; a Milan fashion house wants its own boutiques and e-commerce rather than a distributor’s; a Tuscan winery is asked by a Korean hotel group for direct supply; a design studio wins Korean residential projects. In every case the question is how much presence is needed in Korea, and in what legal form.
This guide sets out the options, the Korean statutes behind each, the Italian documents a Korean registry and bank will ask for — with their Italian names — the EU–Korea trade agreement, the Italy–Korea tax treaty, the Italian tax treatment of Korean profits, visas, food and wine rules and the practical steps. Italian terms appear in italics; Korean terms in Hangul with romanisation.
The Italy–Korea framework
Trade runs on the EU–Korea Free Trade Agreement (한-EU 자유무역협정, han-EU jayu muyeok hyeopjeong), provisionally applied since 1 July 2011 and fully in force since 2015. It removed duty on almost all industrial goods and most agricultural products, opened parts of Korea’s services market, and protects a list of European geographical indications (indicazioni geografiche) — among them Parmigiano Reggiano, Grana Padano, Prosciutto di Parma, Gorgonzola, Asti and Chianti — against imitation in Korea.
Tax relations are governed by the Italy–Korea double taxation convention, which limits Korean withholding on dividends, interest and royalties paid to Italian residents and allocates taxing rights on business profits and capital gains. Both countries are parties to the Hague Apostille Convention, so Italian public documents reach Korean authorities without consular legalisation. And Italy’s export-support system — ICE-Agenzia, SIMEST and SACE — has a long track record in Korea, with an ICE office in Seoul and an active Italian Chamber of Commerce in Korea.
Four ways in
1. A Korean importer or distributor
The usual first step for food, wine and consumer goods: a Korean importer buys, clears customs, holds the import licences and resells. No Korean entity for the Italian company and no Korean tax return. The importer, however, owns the customer relationship and often the product registrations. An agent in Korea who habitually concludes contracts for the Italian company can also create a permanent establishment (국내사업장, gungnae saeopjang) — a stabile organizzazione (stabile organizzazione) — under Article 94 of the Corporate Tax Act, with Korean tax on the profits.
2. A liaison office
A liaison office (연락사무소, yeollak samuso) — the Korean equivalent of an ufficio di rappresentanza (ufficio di rappresentanza) — lets the Italian company place staff in Korea for market research, promotion, trade fairs and after-sales support. It is reported to a designated foreign exchange bank under the Foreign Exchange Transactions Act and may not earn Korean income. Our guide to liaison offices covers the limits.
3. A branch
A branch — a sede secondaria (sede secondaria) — is the Italian company itself registered in Korea under Article 614 of the Commercial Act. It trades and employs; the Italian parent is liable for everything; and every change recorded in the Registro delle Imprese (Registro delle Imprese) — a new amministratore (amministratore), a new registered office — must be mirrored in Korea with apostilled documents.
4. A Korean subsidiary
Most Italian businesses that intend to stay form a Jusik Hoesa (주식회사, jusik hoesa), the Korean stock company. In form it resembles an S.p.A.; in practice, with one shareholder and one director, it is as light to run as an S.r.l. Italian family businesses that will never admit outside investors sometimes prefer the Yuhan Hoesa (유한회사, yuhan hoesa), whose quota-based structure is the close Korean relative of the S.r.l. Either way, capital of at least KRW 100 million registers the company as a foreign investment under the Foreign Investment Promotion Act, which opens the D-8 visa for the investor-director. Our guide to Jusik Hoesa or Yuhan Hoesa compares the two.
Company documents from Italy
When the investor is an Italian company, Korean registries and banks need evidence that it exists, who represents it and that it decided to invest. The usual set:
| Document | Italian | Korean | Treatment |
|---|---|---|---|
| Chamber of commerce extract, showing directors and shareholders | Visura camerale / certificato di iscrizione | 법인등기부에 해당하는 서류 | Recent; apostille |
| Deed of incorporation and articles | Atto costitutivo e statuto | 정관 | Certified copy; apostille |
| Board or shareholders’ resolution approving the Korean investment | Delibera del CdA / dell’assemblea dei soci | 이사회 / 주주총회 의사록 | Notarised extract; apostille |
| Power of attorney to the Korean agent | Procura speciale (atto pubblico o scrittura privata autenticata) | 위임장 | Notarial; apostille |
| Passport of the legal representative | Passaporto del legale rappresentante | 여권 사본 | Certified copy; apostille |
| Ownership and beneficial owners | Titolare effettivo | 실제소유자 확인 자료 | For the bank’s AML checks |
Typical documents for an Italian corporate shareholder. Your list is confirmed before anything goes to the notary.
The visura camerale (visura camerale) is the most useful single document because, unlike a UK or US certificate, it shows the directors, their powers and — for an S.r.l. — the shareholders. Chambers of commerce can issue the certificato di iscrizione (certificato di iscrizione) in English, which shortens the Korean translation. Korean bodies generally expect it to be issued within the last three months, so order it last.
The procura speciale (procura speciale) should be signed by the legale rappresentante (legale rappresentante) within the powers given by the statuto (statuto) and the delibera (delibera), and should list each act the Korean agent may perform: filing the foreign investment notification (외국인투자신고, oegugin tuja singo), subscribing for shares, applying for court and tax registration, opening bank accounts and registering the company seal. Italian notaries are used to drafting powers for foreign use; ask for a bilingual Italian–English text.
Personal documents from Italy
| Document | Italian | Used for | Treatment |
|---|---|---|---|
| Passport | Passaporto | Registry, bank, visa | Certified copy; apostille. Original shown in Korea |
| Identity card and tax code | Carta d’identità elettronica / codice fiscale | Supporting identity | Copy if requested |
| Criminal record certificate | Certificato del casellario giudiziale | D-8 and other long-term visas | Issued by the Procura; apostille |
| Family status | Certificato di stato di famiglia | Dependants’ visas | Apostille |
| Marriage and birth extracts | Estratto dell’atto di matrimonio / di nascita | Spouse and children | Apostille |
| Director’s consent and signature | Accettazione della carica / autentica di firma | Korean registry, in place of a seal certificate | Notarised; apostille |
Typical personal documents for a shareholder-director moving to Korea.
Korean directors file a seal certificate (인감증명서, ingam jeungmyeongseo) with the registry. Italy has no seal system; an Italian director instead provides a signature authenticated by a notaio (notaio) — an autentica di firma (autentica di firma) — which, once apostilled, serves the same purpose. Korean registries want wet-ink originals; the firma digitale (firma digitale) that Italian companies use daily is not accepted for these filings.
The apostille in Italy
Italy issues apostilles through two authorities, and sending a document to the wrong one is the commonest cause of delay. The Procura della Repubblica presso il Tribunale (Procura della Repubblica presso il Tribunale) apostilles notarial acts — the procura, authenticated signatures, certified copies — and judicial documents, including the casellario giudiziale. The Prefettura (Prefettura – Ufficio Territoriale del Governo) apostilles administrative documents such as civil-status and population-register certificates. Each authority deals with documents from its own district.
Most Procure and Prefetture issue apostilles within a few days, some the same day. Italian documents arrive in Korea in Italian or with the notary’s translation; Korean authorities still need a Korean translation, which we arrange in Seoul. Our guide to apostilles for Korea covers the general rules.
Procura for the notary’s papers, Prefettura for the comune’s. Mix them up and you lose a week.
Voixa Korea
Setting up the Korean company
On the Korean side the process is the one every foreign investor follows. The investment is notified to a Korean foreign exchange bank under Article 5 of the Foreign Investment Promotion Act; the capital is wired in euros from the Italian company’s own account — no Italian authorisation is needed for the outbound investment — and the bank certifies receipt; the company is registered with the court; and the tax office issues the business registration number (사업자등록번호, saeopja deungnok beonho). With documents ready, the Korean part takes two to four weeks.
Some Italian habits need adjusting. Korean directors serve terms of up to three years under Article 383 of the Commercial Act, renewed by registration, unlike the indefinite amministratore unico (amministratore unico) common in Italian S.r.l. The company registers a corporate seal (법인인감, beobin ingam) and uses it on formal documents. And there is no collegio sindacale (collegio sindacale) requirement for a small Jusik Hoesa: a company with capital under KRW 1 billion may do without a statutory auditor.
Duty-free trade under the EU–Korea FTA
Italian goods qualify for preferential duty in Korea if they meet the agreement’s rules of origin and the consignment carries a statement on origin on the invoice. For consignments above EUR 6,000, only an approved exporter (esportatore autorizzato) may make the statement; the status is granted by the Agenzia delle Dogane e dei Monopoli (Agenzia delle Dogane e dei Monopoli) and gives the exporter an authorisation number to quote. The Korean importer claims the preferential rate under the FTA Customs Act and must be able to support the origin in a later verification.
Two traps catch Italian exporters. Products assembled in Italy from substantial non-EU components may not meet the product-specific rules; and goods shipped through a non-EU hub must satisfy the transport rules to keep their origin. A Korean subsidiary importing from its Italian parent must also satisfy Korean customs valuation for related-party prices and pay 10% import VAT, which it recovers through its returns — see our guide to import-export companies in Korea.
Food, wine and regulated products
Italian food and drink are among Korea’s most sought-after imports, and also among its most regulated. Under the Special Act on Imported Food Safety Control, a foreign food manufacturer must register its plant with the Ministry of Food and Drug Safety before its products can be imported, and the Korean importer files an import declaration for each consignment and holds an imported food business registration. Labels must be in Korean and meet Korean rules on ingredients, allergens and dates; a Korean sticker over the Italian label is normal.
Wine, spirits and beer are imported under a liquor import licence (주류수입업 면허, juryu suibeop myeonheo) granted by the tax office under the Liquor Tax Act. An Italian winery that forms its own Korean company can hold the licence itself rather than depend on an importer — a step many producers take once volumes justify it. Online sale of wine to consumers remains heavily restricted.
Cosmetics need a responsible cosmetics seller registration under the Cosmetics Act; machinery and electrical products need KC certification; children’s products their own KC mark. Plan these before the first shipment, not after.
Korean tax and the Italy–Korea treaty
The Korean subsidiary pays corporate tax at 10% to 25% plus local income tax of one-tenth, under Article 55 of the Corporate Tax Act — 11% on the first KRW 200 million of profit — and charges 10% VAT on Korean sales. Italians used to the Sistema di Interscambio (SdI) will find Korean electronic tax invoices (전자세금계산서, jeonja segeum gyesanseo) familiar: Korea has run mandatory e-invoicing for years. Payments to the Italian parent bear Korean withholding, reduced by the treaty:
| Payment from Korea to Italy | Korean domestic rate | Treaty rate | Condition |
|---|---|---|---|
| Dividends | 22% | 10% | Italian company holding at least 25% of the capital |
| Dividends — other | 22% | 15% | Smaller holdings and individuals |
| Interest | 22% | 10% | Exemptions for certain public lenders |
| Royalties | 22% | 10% | |
| Service fees | Usually none | Business profits article | No Korean tax without a permanent establishment |
Domestic rates include Korean local income tax. Source: PwC Worldwide Tax Summaries, Korea, January 2026.
To claim the treaty rate, the Italian company files a limited tax rate application (제한세율 적용신청서, jehan seyul jeogyong sincheongseo) with the Korean payer before payment under Article 98-6 of the Corporate Tax Act, attaching a certificate of tax residence (certificato di residenza fiscale) from the Agenzia delle Entrate. Without it, 22% is withheld and a refund must be claimed. Our guide to dividend withholding covers the procedure.
Italian tax on Korean profits
An Italian company receiving a dividend from its Korean subsidiary is normally taxed on only 5% of it: under Article 89 of the TUIR (art. 89 TUIR), 95% of dividends from foreign companies is excluded from IRES. The consequence mirrors the British case: because almost all the dividend is exempt, little or no Italian tax remains against which to credit Korean withholding under Article 165 TUIR (art. 165 TUIR). The 10% treaty rate is therefore largely a final cost — and the 22% domestic rate, if the forms are missed, a painful one.
The exemption does not apply to dividends from companies resident in privileged tax regimes (regimi fiscali privilegiati) under Article 47-bis TUIR (art. 47-bis TUIR). Korea’s headline rates are well above the thresholds, but for a controlled subsidiary the test looks at the effective tax rate compared with half the Italian one, and a small Korean company paying 11% on modest profits can fall below it. The same comparison feeds the Italian CFC rules in Article 167 TUIR (art. 167 TUIR), which also require a majority of passive income — rarely the case for a trading or manufacturing subsidiary. A Korean subsidiary with a real business usually satisfies the exemptions, but it is worth confirming with your commercialista (commercialista) before the first dividend.
A branch is different: its profits form part of the Italian company’s income, with credit for Korean tax, unless the company opts for the branch exemption (art. 168-ter TUIR), which is irrevocable and applies to all its foreign branches. Royalties and interest from Korea are taxable in Italy with credit for Korean withholding. Intra-group charges must meet both countries’ transfer pricing rules — Article 110(7) TUIR (art. 110, comma 7, TUIR) in Italy and the Adjustment of International Taxes Act in Korea.
Staff and visas
Italian citizens can visit Korea for business meetings for up to 90 days without a visa, subject to Korea’s electronic travel authorisation rules at the time of travel. Working in Korea requires a visa under the Immigration Act. An Italian shareholder-director who invests at least KRW 100 million and manages the company applies for the D-8 corporate investment visa (기업투자 비자, gieop tuja bija), with the casellario giudiziale (casellario giudiziale) and family certificates above; our guide to D-8 requirements covers the file. Employees transferred from Italy come on a D-7 intra-company transfer or an E-7 professional visa.
Korea and Italy have a social security agreement coordinating pension contributions for seconded workers, so an employee posted from Italy for a limited period can stay in the Italian INPS system with a certificate of coverage. Korean health insurance still applies. Local staff are employed under the Labour Standards Act, with written terms, a national minimum wage and severance of one month’s pay per year after one year — a Korean TFR (trattamento di fine rapporto), in effect. Our guide to hiring in Korea sets out the 2026 rates.
Italian support for the move
- SIMEST can take a minority stake in a foreign subsidiary alongside the Italian company and lends for internationalisation through the Fondo 394/81 (Fondo 394) programmes.
- SACE insures export receivables and guarantees financing for foreign expansion.
- ICE-Agenzia runs an office in Seoul, Italian pavilions at Korean trade fairs and buyer programmes.
- The Italian Chamber of Commerce in Korea connects Italian companies with each other and with Korean partners.
Protect the brand
Korea is a first-to-file (선출원주의, seonchurwonjuui) trademark system under Article 35 of the Trademark Act: the first applicant generally gets the mark. Italian brands that exhibit at Korean fairs or appoint a distributor before filing sometimes find their name already registered. Extend an existing Italian or EU registration to Korea through the Madrid system, or file directly with the Korean Intellectual Property Office, and consider registering the Hangul version too. Geographical indications protected under the FTA are a separate shield for the product name, not for your brand.
Sectors where Italian businesses do well
- Food and wine — cheeses, cured meats, pasta, olive oil, coffee and wine, with GI protection and a strong premium segment.
- Fashion, leather and eyewear — department stores, flagship boutiques and online platforms.
- Furniture and design — residential projects, hotels and showrooms in Seoul.
- Machinery and automation — packaging, food processing, textile and industrial machinery for Korean manufacturers.
- Pharmaceuticals and cosmetics — subject to Korean product approvals.
- Automotive and components — luxury and performance cars and parts.
A worked example
Officine Rossi S.r.l., a packaging-machinery maker near Bergamo, has sold to Korean food companies through an agent for years. It forms a Seoul Jusik Hoesa with KRW 200 million of capital, notified as a foreign investment. The visura (visura), statuto (statuto) and the delibera del CdA (delibera del CdA) are apostilled by the Prefettura and Procura di Bergamo; the procura speciale (procura speciale) is drafted by the company’s notaio in Italian and English. An Italian service engineer moves to Seoul on a D-8 visa as representative director, and two Korean technicians are hired.
Machines are imported from the parent duty-free under the FTA, with statements on origin from Officine Rossi as approved exporter; import VAT is recovered quarterly. In year three the subsidiary makes KRW 300 million of profit, pays KRW 44 million of Korean corporate tax including local tax, and pays a dividend with 10% treaty withholding plus Korean local income tax. In Italy 95% of the dividend is exempt; the commercialista confirms that the Korean company’s effective tax rate and active business keep it outside the privileged-regime and CFC rules.
Mistakes we see
- Apostilles from the wrong authority — notarial acts sent to the Prefettura, certificates to the Procura.
- A visura ordered first and out of date by the time the rest is ready.
- A procura that does not list the Korean acts, or exceeds the legale rappresentante’s powers under the statuto.
- Statements on origin without approved exporter status on consignments above EUR 6,000.
- No plant registration with the Korean food safety ministry before shipping food.
- Missing treaty forms before the first dividend.
- Exhibiting at a Korean fair before filing the trademark.
Korean terms you will meet
Italian terms you will meet
Questions readers ask
Can an Italian company set up a subsidiary in South Korea?
Yes. An Italian S.r.l. or S.p.A. can own 100% of a Korean Jusik Hoesa or Yuhan Hoesa in most sectors. With at least KRW 100 million of capital it is registered as a foreign investment.
Which Italian documents are needed?
Usually the visura camerale, atto costitutivo e statuto, a board or shareholders’ resolution, a notarial procura speciale and the legal representative’s passport, all apostilled.
Who issues apostilles in Italy?
The Procura della Repubblica for notarial and judicial documents, and the Prefettura for administrative and civil-status documents.
Do Italian goods enter Korea duty-free?
Most do under the EU–Korea FTA, with a statement on origin; above EUR 6,000 per consignment the exporter must be an approved exporter.
What is the dividend withholding rate from Korea to Italy?
10% for an Italian company holding at least 25% of the capital, otherwise 15%, if the treaty forms are filed before payment. Without them, 22%.
Are Korean dividends taxed in Italy?
Usually only 5% of the dividend is taxable under Article 89 TUIR, so Korean withholding is largely a final cost.
Can an Italian director live in Korea?
Yes, on a D-8 investor visa after investing at least KRW 100 million, or on a D-7 or E-7 visa as a transferred or professional employee.
- PwC Worldwide Tax Summaries — Korea, withholding taxes (Italy row)
- European Commission — EU–South Korea trade agreement
- Commercial Act (상법)
- Corporate Tax Act (법인세법)
- Foreign Investment Promotion Act (외국인투자 촉진법)
- Special Act on Imported Food Safety Control (수입식품안전관리 특별법)
- Agenzia delle Entrate — certificati di residenza fiscale
- Korea Legislation Research Institute — English translations
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.