Guides
Korean rules on tax, staff, visas and company paperwork, explained for foreigners by PAPATONY.
39 guides
If a supplier won't issue a tax invoice, the buyer can issue it
Buyers in Korea left without a tax invoice can apply on Form No. 14-2 within a year of the tax period's end, for deals of ₩50,000 or more including VAT.
Tax & accounting6 min read
2027 minimum wage ₩10,700: notify workers by December 31, 2026
Korean employers must tell workers the 2027 minimum wage (₩10,700 an hour) and three other items by December 31, 2026, or face a fine of up to ₩1 million.
HR & labor6 min read
Mid-year hires and leavers: year-end tax settlement runs twice
Employers in Korea settle leavers in their final pay and issue a receipt, and new hires, foreign staff included, bring the old employer's receipt before February pay.
Tax & accounting6 min read
After withholding tax, pay 10% local income tax on Wetax by the 10th
Every company in Korea that withholds tax also collects 10% of the withheld amount as local income tax, filed on Wetax by the 10th of the next month.
Tax & accounting6 min read
Apply for R&D tax credit pre-review on Hometax before filing your return
Before filing, companies claiming Korea's R&D tax credit can apply on Hometax, and the NTS checks in advance whether all or some of their costs qualify.
Government support5 min read
Korea's five mandatory workplace training duties vary by industry and size
Five laws set the five statutory training duties for employers in Korea. Industry and headcount (5, 10 and 50 staff) decide which apply and how.
HR & labor6 min read
Simplified payment statements for wages are due monthly from January 2027
From January 2027 pay, simplified payment statements for wages in Korea are due monthly. The first deadline is March 2, 2027.
Tax & accounting5 min read
Answer a client's privacy audit request with evidence for each article
A client's audit request is a legal duty, and companies that process personal data for clients in Korea answer it article by article, with evidence.
Legal & compliance6 min read
Foreign employees get Korea's 19% flat tax rate only if they apply
The 19% flat tax rate for foreign employees in Korea applies only on application, made through their payroll staff on Form No. 8-2 monthly or Form No. 8 at year-end.
Visas & foreign staff6 min read
File your retirement pension plan rules on Form No. 1 via the Labor Portal
Plan rules for a DB or DC pension must be filed by the employer on Form No. 1 with worker representative proof, and new businesses set up a plan within 1 year.
HR & labor5 min read
Before paying for a credit rating report, offer public tax certificates
Companies asked for a credit rating report can often offer Hometax and Wetax certificates instead; tax payment certificates are valid for 30 days from issue.
Finance & credit5 min read
After a payment order objection, pay the stamp shortfall or face dismissal
Creditors facing an objection to a payment order must pay the stamp duty difference by the court's deadline, or the payment order application is dismissed.
Legal & compliance5 min read
Selling unlisted shares requires two tax returns with the same deadline
Sellers of unlisted Korean shares file two Hometax returns, capital gains tax and securities transaction tax, both due 2 months after the half-year ends.
Finance & credit5 min read
File changed work rules on Form No. 15 with workers' opinion or consent
Employers with 10 or more regular workers must file each work rules change on Form No. 15 with the workers' opinion, plus consent if the change is unfavorable.
HR & labor6 min read
Companies with zero revenue must still file a corporate tax return
Korean companies with no sales or a loss must still file a corporate tax return, and it counts only with financial statements and a tax adjustment statement.
Tax & accounting6 min read
After a harassment report, four employer duties carry fines in Korea
Failing to investigate a harassment report, act on the victim's request, discipline or keep secrets can cost employers in Korea a fine of up to ₩5 million.
HR & labor5 min read
A VAT preliminary notice can sometimes be replaced by a preliminary return
Companies billed 50% of last period's VAT by preliminary notice get no notice under ₩500,000, and some can file a preliminary return instead.
Tax & accounting5 min read
A security pledge alone does not make information a trade secret in Korea
Information is a protected trade secret in Korea only if the employer actually keeps it secret. A signed pledge is not enough without real controls.
HR & labor5 min read
Tax losses carry forward 15 years; SMEs may deduct up to 100% of income
Under Korean corporate tax, a company's loss offsets later income for 15 years only if it was in a filed tax base. The yearly cap is 80%, or 100% for SMEs.
Tax & accounting5 min read
SME confirmation certificates run 1 year from 3 months after year-end
The validity of a company's SME confirmation certificate is not counted from the issue date. With a December year-end, it runs April 1 to March 31.
Government support5 min read
Semiannual withholding tax payment: apply only in June or December
Withholding tax can be paid twice a year instead of monthly by employers in Korea with 20 or fewer regular employees, but they must apply in December or June.
Tax & accounting5 min read
A provisional attachment can be cancelled if you delay the main lawsuit
Security may be required even with good evidence when creditors freeze a debtor's assets in Korea, and delaying the main lawsuit can cost them the attachment.
Legal & compliance5 min read
Destroying personal data: methods set by law and a five-field record
Korean law sets how personal data must be destroyed once no longer needed. A five-field record lets your company prove it in client audits or official checks.
Legal & compliance5 min read
Personal data breach: notice and report are separate, both within 72 hours
If personal data leaks in Korea, notify the affected people within 72 hours. A report to the regulator, also due within 72 hours, is needed only in three cases.
Legal & compliance5 min read
Payslips in Korea need six items, including the calculation method
Every payday, employers in Korea must give each worker a written or electronic payslip with six items, including how variable pay was calculated.
HR & labor4 min read
Non-deductible input VAT: the Article 39 list and the 20-day rescue
Input VAT on a Korean VAT return is denied only on VAT Act Article 39(1) grounds, and pre-registration purchases count if the company registers within 20 days.
Tax & accounting5 min read
Layoffs for business reasons in Korea run on two deadlines: 50 and 30 days
Before layoffs in Korea, the employer must notify and consult the employee representative 50 days ahead and report large cuts to the labor ministry 30 days ahead.
HR & labor5 min read
Employers of foreign staff in Korea must report changes within 15 days
A foreign employee's resignation, death, disappearance or key contract change must be reported by the employer within 15 days, to immigration or the employment center.
Visas & foreign staff5 min read
Employment insurance for foreign employees in Korea depends on visa status
Employment insurance in Korea covers foreign workers on D-7, D-8, D-9 and F-5 automatically; F-4 and other work-eligible statuses are covered only if an application is made.
Visas & foreign staff5 min read
Director pay in Korea needs the articles or a shareholders' resolution
Director pay at companies in Korea needs a basis in the articles of incorporation or in a shareholders' resolution, under Commercial Act Article 388.
Legal & compliance5 min read
Without a depreciation report, equipment defaults to declining balance
New companies in Korea must report a depreciation method and useful life by the first corporate tax return deadline, or legal defaults apply in later years too.
Tax & accounting5 min read
Banks must identify a company's beneficial owner: the 25% test and 3 steps
Banks must identify who ultimately controls a company when founders open its bank account in Korea, starting with anyone holding 25% or more.
Legal & compliance4 min read
A contract without a seal is still valid; the issue is proving it later
A seal is not needed to form a contract in Korea, but a signature or seal makes a private document presumed genuine in court.
Legal & compliance5 min read
Without a car logbook, deductible company car costs stop at ₩15,000,000
Without a logbook, business car costs over ₩15,000,000 are cut for companies in Korea, and without business-only insurance nothing is deductible.
Tax & accounting5 min read
Business entertainment expense limit: SMEs start from ₩36 million
In Korea, the deductible cap on business entertainment expenses is a basic limit plus a revenue-based limit. SMEs get a ₩36 million basic limit for a full year.
Tax & accounting5 min read
Register a corporate R&D institute online; report changes within 30 days
Companies in Korea register a research institute or R&D department online with KOITA, free of charge, and must report changes within 30 days.
Government support7 min read
Separation certificates are due within 10 days of an employee's request
Employers in Korea must issue a departing employee's separation certificate (Form No. 75-4) within 10 days of a request, using the right reason code.
HR & labor6 min read
Company housing can be excluded from holding tax if filed by September 30
Staff housing and dormitories that companies own in Korea can be excluded from holding tax by filing Forms No. 4 and 5 between September 16 and 30.
Tax & accounting7 min read
Corporate tax return due March 31: start preparing in November
Korean companies with a December year-end file corporate tax by March 31 and local income tax by end of April. Start in November, while accounts can be fixed.
Tax & accounting7 min read