South Korea - Market Entry and Legal Services

Lawyer & Law Firm in South Korea

South Korea is famous for its pathbreaking rise from one of the poorest countries to a well-developed and high-income country in just one generation. It now ranks 12th among the world's largest economic powers and 4th in Asia in 2023. The country has witnessed remarkable success in combining rapid growth with reduction in poverty. Despite its limitations, South Korea focused on technology development and innovation to promote growth. Some of the major industries of the country include textile, steel, automotive, shipbuilding, and electronics. South Korea is the world's largest producer of semiconductors.

Commercial Relations between India-South Korea

In 2021, the bilateral trade between India and South Korea reached a record high of $23.7 billion, exhibiting a substantial growth rate of 40%. South Korea has also become a significant contributor to foreign direct investment in India, particularly in sectors such as metallurgy, automobile, electronics, and healthcare. This upward trend in trade and investment indicates a strengthening economic relationship between the two countries, with projections suggesting bilateral trade could reach $50 billion by 2030.

Business Advantage for Indian Companies in South Korea

South Korea offers a strong and technologically advanced economy with modern infrastructure, making it an attractive destination for Indian investors. The country's strategic location provides access to other key markets in the region. The government provides incentives and support programs for foreign investors, and the skilled workforce, proficient in English, facilitates business communication. Cultural similarities between India and South Korea further strengthen business relationships, while bilateral trade agreements provide a favourable framework for Indian companies to operate and expand in the South Korean market.

Incentives and Support Programs by South Korea for Indian Companies

South Korea provides various incentives and support programs for foreign companies, including Indian companies, to invest in the country. These include:

• The Korea-India Joint Investment Promotion Committee (JIPC), facilitating investment and business partnerships between the two countries.
• The Korea Trade-Investment Promotion Agency (KOTRA), offering information, market research, and business matchmaking services.
• Free Trade Agreements (FTAs) signed with other countries, including India, eliminating or reducing tariffs on goods and services.
• Special Economic Zones (SEZs) with tax breaks, simplified customs procedures, and administrative support.
• Free Economic Zones (FEZs) with incentives such as corporate tax exemptions and land lease discounts.
• Investment incentives like tax breaks, subsidies, and low-interest loans.
• Support for research and development (R&D) through tax breaks, grants, and subsidies.
• Investment incentives specifically for high-tech industries.
• An investment visa program for simplified visa procedures and longer stays.
• The International Technology Transfer Centre (ITTC), assisting in acquiring and transferring advanced Korean technologies.

These incentives and programs aim to attract foreign investment, promote business partnerships, and foster technological collaboration between South Korea and India.

Starting a Business in South Korea

The process to set up a business in South Korea involve the following steps:

• Choosing a Legal Structure that aligns with the business requirements.
• Registering and safeguarding the trademark or service mark
• Preparing Articles of Incorporation which includes important aspects of a company
• Registration of the business with the Korean Commercial Registry
• Obtaining a company seal and registering it
• Obtaining licenses and permits depending upon the nature of business
• Registration for taxes and business license
• Registration for social insurance
• Opening a bank account to facilitate business transactions
• Rent or purchase an appropriate office space

Visa and Immigration

South Korea offers a variety of visas, depending upon the nature and duration of stay in the country. The following visas are granted to those who wish to conduct business activity in South Korea:

• D-8-1 Foreign Investment Company Visa
• D-8-3 Unincorporated Enterprise Visa
• D-8-2 Business Venture Visa
• D-8-4 Technology and Business Start-up Visa

South Korea provides a favourable investment environment with diverse opportunities across various industries. The country's strong economy, skilled workforce, advanced infrastructure, and government support make it an attractive destination for both domestic and foreign investors. With careful planning and strategic decision-making, investing in South Korea can lead to substantial returns and long-term success.

To read more about the South Korea market and various business opportunities – CLICK HERE

How Do We Help?

At India Law Offices (ILO), we strive to deliver exceptional legal services to our clients not just within India, but on a global scale. Over the past two decades, we have diligently expanded our presence by establishing strong partnerships, both formal and informal, with esteemed professionals from leading law firms in key commercial hubs worldwide. These alliances have empowered us to offer efficient and seamless representation of the utmost quality in any jurisdiction. Through our extensive network, we are able to cater to the diverse needs of our clients and ensure that they receive top-notch legal assistance across borders.

With a host of global affiliations with some of the largest law firms and legal networks, India Law Offices makes business possible worldwide for its clients. We provide comprehensive support to companies from South Korea seeking to enter the Indian market. Our services encompass various aspects such as establishing subsidiaries or branches, navigating commercial contracts, and addressing any legal requirements. Additionally, we extend our expertise to Indian companies aiming to expand their operations in South Korea, offering corporate assistance and legal support tailored to their specific needs. In collaboration with our South Korean counterparts, we are well-equipped to provide guidance on cross-border transactions between India and South Korea, including mergers and acquisitions (M&A), joint ventures, and other related activities. We are committed to helping our clients navigate the complexities of Indo-South Korean business collaborations and achieve their desired outcomes. Our expertise extends to a wide range of areas, ensuring comprehensive assistance in various aspects such as:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate

Our Partner in South Korea

India Law Offices work closely with Pine Law Firm, a respected law firm in South Korea, to provide comprehensive legal support to clients in India and South Korea on cross-border matters that arise between two nations. Located in Seoul South Korea, Pine Law Firms offers expertise in areas of Corporate and Commercial Law, Data Protection and Privacy, Foreign Investment (inbound and outbound) and Dispute Resolution.

If you are a South Korean company or individual seeking assistance in India or an Indian entrepreneur planning to enter the South Korean market, we encourage you to complete the form below and connect with our team of legal experts. We are dedicated in providing best legal guidance and support as per your requirement.