Liaison Office Setup
Guide to establishing a liaison office for market research and business communication in Korea
What is a Liaison Office?
A liaison office is an office established by a foreign company to conduct non-business activities in Korea. Only non-revenue activities such as market research, information gathering, and business communication with head office are permitted; direct business activities or revenue generation in Korea is not allowed.
It is suitable for companies in the early stages of exploring entry into the Korean market, and can be converted to a branch office or corporation in the future.
Key Activities of a Liaison Office
Market Research
Korean market trend research and information gathering
Business Communication
Business liaison and mediation between HQ and Korean partners
Quality Control
Product quality management and inspection in Korea
Advertising & PR
Promotional activities for HQ products and services
Liaison Office vs. Branch vs. Corporation
Key Difference: A liaison office cannot engage in revenue-generating activities, a branch can conduct business within the scope of the head office, and an FDI corporation can operate independently and receive investment incentives. Choose the appropriate form based on your business purpose and scale.
Setup Procedure (Brief)
Authority Report
Report liaison office establishment to Bank of Korea or foreign exchange bank
Office Lease
Secure domestic office space and sign lease agreement
Tax Filing
Apply for unique identification number at the tax office
For detailed procedures and required documents, please refer to the Liaison Office Setup Procedure and Documents page.
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Request ConsultationFrequently Asked Questions
What is a liaison (representative) office?
A liaison office is set up by a foreign corporation for non-business activities in Korea such as market research and business coordination. It cannot engage in profit-making activities and is established by obtaining a unique number from a foreign exchange bank.
Can a liaison office conduct business or generate revenue?
No. A liaison office may only carry out non-business activities such as market research, information gathering, and communication with the head office. If business or revenue activities are needed, it must be converted into a branch or corporation.
What is the process to establish a liaison office?
Report the liaison office establishment to a foreign exchange bank, receive a unique number, and (if needed) lease and open an office. Because there is no capital requirement, the process is relatively simple.
Can a liaison office be converted into a branch or corporation?
Yes. As the business grows, it can be converted into a registered branch or a foreign-invested corporation. The timing and method of conversion should be designed considering tax and visa implications.