What a foreign-owned company in Korea has to file, and who does it
A Korean entity files the same returns whether its owner is in Seoul or abroad. What changes for a foreign-owned company is that every one of them is in Korean, on a Korean deadline, and usually with no one locally whose job it is to watch for them. These obligations are not optional and apply regardless of company size once business activities begin.
What is required, and what is not
Foreign companies in Korea tend to ask the same first question: which of these things must we do, and which are we simply being sold? Here is the line.
Mandatory
A Korean corporation with employees. Deadlines assume a December fiscal year end.
| Obligation | When | Who handles it |
|---|---|---|
| Corporate income tax return | Within 3 months of fiscal year end — 31 March for a December year-end. An interim return follows the first half of the year. | Us |
| VAT returns | Four times a year — 25 January, 25 April, 25 July, 25 October. | Us |
| Withholding tax on wages and certain payments | By the 10th of the following month. Smaller employers may file semi-annually, with approval. | Us |
| Year-end income tax settlement for employees | With February payroll. | Us |
| Payment statements | Deadlines differ by type of payment; annual wage statements are due in March. | Us |
| Electronic tax invoices | Issued through the national system and transmitted the following day. | Us, on your behalf — or your own staff |
| Enrolment in the four social insurances, and exit reporting | On hiring and on leaving. Deadlines differ by scheme; the earliest is 14 days. | Us |
| A written employment contract for every employee | At hiring. It must be handed to the employee, not merely signed. | We draft it. You sign and deliver it — this one cannot be delegated. |
| A payslip at every payment | Every pay date. | We prepare it. You deliver it, or ask us to send it. |
| Double-entry books and supporting documents | Continuously, and kept for at least five years. | Us |
| Statement of international transactionsif you transact with a related party abroad | Filed with the corporate tax return. | Us |
| Foreign-investment change reportforeign-invested companies only | On capital increase or transfer of shares. | Us, as administrative agent |
Corporate income tax return
When
Within 3 months of fiscal year end — 31 March for a December year-end. An interim return follows the first half of the year.
Who handles it
Us
VAT returns
When
Four times a year — 25 January, 25 April, 25 July, 25 October.
Who handles it
Us
Withholding tax on wages and certain payments
When
By the 10th of the following month. Smaller employers may file semi-annually, with approval.
Who handles it
Us
Year-end income tax settlement for employees
When
With February payroll.
Who handles it
Us
Payment statements
When
Deadlines differ by type of payment; annual wage statements are due in March.
Who handles it
Us
Electronic tax invoices
When
Issued through the national system and transmitted the following day.
Who handles it
Us, on your behalf — or your own staff
Enrolment in the four social insurances, and exit reporting
When
On hiring and on leaving. Deadlines differ by scheme; the earliest is 14 days.
Who handles it
Us
A written employment contract for every employee
When
At hiring. It must be handed to the employee, not merely signed.
Who handles it
We draft it. You sign and deliver it — this one cannot be delegated.
A payslip at every payment
When
Every pay date.
Who handles it
We prepare it. You deliver it, or ask us to send it.
Double-entry books and supporting documents
When
Continuously, and kept for at least five years.
Who handles it
Us
Statement of international transactions
if you transact with a related party abroad
When
Filed with the corporate tax return.
Who handles it
Us
Foreign-investment change report
foreign-invested companies only
When
On capital increase or transfer of shares.
Who handles it
Us, as administrative agent
As of 2026. This page states obligations; it is not advice on your particular case.
Optional
None of the following is required by law. They exist because they solve something.
| Not required | What it is actually for |
|---|---|
| Outsourcing the bookkeeping itself | The books are mandatory. Who keeps them is not. This is the only decision on this page that is entirely yours. |
| English management reporting, monthly or quarterly | So head office can read the numbers without a translation round. Figures stay on Korean GAAP. |
| IFRS or group GAAP conversion | For consolidation. Separate from the reporting pack above — one changes the format, the other changes the accounting basis. |
| Early VAT refund filing | Brings refunds forward for exporters and other zero-rated businesses. Worth doing only if the amount tied up is material — we will say so if it is not. |
| Semi-annual withholding filing | Fewer filings for small employers. Requires approval. |
| Transfer pricing documentation beyond the statement | Required only above statutory thresholds. Below them, it is a choice. |
| Tax audit support, advance rulings | Engaged when needed. |
Outsourcing the bookkeeping itself
The books are mandatory. Who keeps them is not. This is the only decision on this page that is entirely yours.
English management reporting, monthly or quarterly
So head office can read the numbers without a translation round. Figures stay on Korean GAAP.
IFRS or group GAAP conversion
For consolidation. Separate from the reporting pack above — one changes the format, the other changes the accounting basis.
Early VAT refund filing
Brings refunds forward for exporters and other zero-rated businesses. Worth doing only if the amount tied up is material — we will say so if it is not.
Semi-annual withholding filing
Fewer filings for small employers. Requires approval.
Transfer pricing documentation beyond the statement
Required only above statutory thresholds. Below them, it is a choice.
Tax audit support, advance rulings
Engaged when needed.
What we do not do
Some things this office cannot take on, and we would rather say so before you ask.
- Recruitment and job placement. Paid job placement requires registration under the Employment Security Act, which this office does not hold. We take over the moment someone is hired — contract, insurance enrolment, payroll.
- Customs clearance, export declarations, purchase confirmations. A licensed customs broker. If your business runs on exports, that appointment matters as much as this one.
- Standing labour advisory and work rules. A certified labour attorney, particularly once you pass five employees — the rules change at that point, and we will tell you when you are approaching it.
- Corporate registration filings. A judicial scrivener.
- Filing licence, permit and visa applications. This office holds the administrative agent licence and files these applications itself. We advise on the requirements and the order they come in, prepare the paperwork, and handle the filing with the competent authority directly — the licence work and the tax work stay in one engagement.
- Court litigation. An attorney. Tax appeals at the administrative stage we do handle.
Accounting & Back-Office
Accounting Operations & Admin Support
경리대행
The day-to-day running of your Korean office — tax invoice management, expense documentation, and vendor coordination — handled externally so you can focus on operations.
Tax Invoice Management
세금계산서 발급 대행
End-to-end tax invoice handling — from counterparty communication to issuance — without requiring certificate access.
Tax Bookkeeping
세무기장
Outsourced bookkeeping services — monthly transaction classification and reconciliation, producing the statutory accounting records behind your tax filings.
Payroll & Withholding Tax
급여·원천세·4대보험
Monthly payroll processing, withholding tax filings, four mandatory social insurances, and year-end settlement — for teams from a single foreign executive to a small local hire base.
Tax Compliance
Tax Filing
신고대행
A lighter engagement model — accurate Corporate Income Tax and VAT submissions handled at filing time only, without a full ongoing bookkeeping contract.
Corporate Income Tax
법인세
Year-end corporate tax filings based on properly maintained accounting records and financial statements.
VAT Compliance
부가가치세
Periodic VAT filings that align transaction records, tax invoices, and accounting entries consistently.
Licensing & Corporate Administration
Licensing & Permits
인허가
Industry-specific licenses and permits — requirements identified, procedures mapped, timelines kept realistic.
Corporate Governance
이사회·주총 관리
Board and shareholder meeting procedures managed to ensure statutory compliance and proper corporate records.
HQ Reporting Support
본사 승인 절차 대응
Korean statutory documents and filings prepared in formats compatible with overseas headquarters requirements.
What we need from you
Two things, and we would rather state them before a quote than after.
Access to Hometax.
So that filings, issued and received tax invoices, and withholding records can be read directly, rather than reconstructed from paper at the end of a quarter.
A corporate bank account and a corporate card, both linked.
Company money should leave through accounts we can see.
Where spending runs through personal cards and is reimbursed afterwards, four things stop working at once:
- You cannot see where the company stands during the month — only three months later.
- Input VAT credit is lost on purchases that were never invoiced to the company.
- Deductibility becomes an argument you have to win with paper, rather than a record.
- Closing turns into receipt archaeology.
This is not a matter of preference. It is what makes the four above possible.
If the records have to be collected by hand instead, the work is a different size. We will say so before we start, rather than absorb it quietly and let it show up as something else later.
Integrated Back-Office Approach
In Korea, tax, payroll, corporate governance, and administrative compliance operate as a connected system.
Managing these obligations through multiple, disconnected providers often leads to delays, inconsistencies, and increased compliance risk. An integrated back-office approach allows foreign businesses to operate in Korea with clear accountability and consistent execution across all required areas.
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