OCTIS vs stock company vs limited company in South Korea
The two forms most foreign-invested companies use, with set-up cost and audit duties from KOTRA's guide.
Last checked · 3 sources
Otty's short answer
A stock company (주식회사) is the standard form: shares move freely, it can issue bonds and it can list. A limited company (유한회사) is lighter, with no board and no auditor, but share transfers need approval at a general meeting and it cannot list. It used to avoid external audit, and since fiscal years starting on or after 1 November 2018 it no longer fully does.
Side by side
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| What matters | OCTISHong Kong company + OCTIS global plan | Stock company (주식회사) | Limited company (유한회사) |
|---|---|---|---|
| Suited to | Teams spread out, selling in several countries | Larger, many shareholders | Small group who trust each other |
| Minimum investment | No minimum capital | None (KRW 100 million for FDI) | None (KRW 100 million for FDI) |
| Directors needed | At least 1, an individual | 3, or 1 if capital under KRW 1 billion | At least 1 |
| Auditor | Independent HK auditor, coordinated by OCTIS | Required, with exceptions | Not required |
| External audit threshold | Yes every year, unless dormant | Meets 2 of 4 size tests | Meets 3 of 5 size tests |
| Registration tax | At least 10% below any qualifying quote (Lowest Price Guarantee); government fees included | 0.4% of paid-in capital | 0.4% of paid-in capital |
| Registration tax, Seoul area | Not needed for the Hong Kong company; local rules apply if you trade there | 1.2% unless exempt trade | 1.2% unless exempt trade |
If you have staff, premises or local sales in this country, its own registration and tax rules still apply. OCTIS can help you arrange them.
Data sources & disclaimer: Comparison data was compiled from publicly available sources — including the competitors' own published pricing and feature pages — captured on 9 November 2026. Figures reflect the typical or advertised pricing at that time and may have changed since; plans, inclusions and prices vary by provider, region and promotion. OCTIS is independent and not affiliated with the named companies; all trademarks belong to their respective owners. This comparison is provided in good faith for general information only and is not professional, legal or financial advice — please verify current details with each provider before deciding.
Which one fits you
OCTIS · Hong Kong company + OCTIS global plan
Choose OCTIS if your team is spread out or you sell in several countries and want company, accounts and CRM in one place.
Stock company (주식회사)
Choose a stock company if you may bring in investors, issue bonds or list, or want shares to move without approvals.
Limited company (유한회사)
Choose a limited company if it is a small group, you want no board or auditor, and approved transfers are fine.
What the table does not show
What it costs to register
KOTRA's guide gives a worked example for KRW 100 million of capital in the Seoul overconcentration control area. Registration tax is KRW 1,200,000 (0.4% tripled), local education tax KRW 240,000, a stamp KRW 25,000 and notarisation KRW 1,000,000, a total of KRW 2,465,000 before legal fees. Outside the control area, or for trades exempt under the Local Tax Act, the registration tax is 0.4%, which is KRW 400,000 on the same capital.
Audit and disclosure
A limited company was popular with foreign investors who wanted to disclose less. An amendment to the Enforcement Decree of the Act on External Audit of Stock Companies, applying from fiscal years starting on or after 1 November 2018, now brings larger limited companies under external audit. The tests, in the guide's list, include total assets of KRW 12 billion or more, total debt of KRW 7 billion or more, sales of KRW 10 billion or more and 100 or more employees. A small start-up falls under them only later.
Foreign investment is its own track
Either form can be a foreign-invested company. A foreign investment of KRW 100 million or more with at least 10% of voting shares is recognised as FDI, with notification, a corporate bank account at a foreign exchange bank and a foreign-invested company registration within 60 days of paying in. Below KRW 100 million you can still incorporate, but it is not recognised as FDI.
Where OCTIS fits
OCTIS does not incorporate or keep books in Korea. If your Malaysian or Hong Kong company is opening a Korean subsidiary, we keep the home company's books and can consolidate the subsidiary's statements into them. You can also compare the cost of running the work from Malaysia or Hong Kong. Send us your current bill and we come in 10–30% off it.
Frequently asked questions
What is the difference between 주식회사 and 유한회사?
A stock company has freely transferable shares, a board, bonds and listing. A limited company has no board or auditor, needs general-meeting approval for transfers, cannot issue bonds and cannot list.
How much does it cost to set up a company in Korea?
KOTRA's example for KRW 100 million capital in the Seoul area is KRW 2,465,000 for taxes, stamp and notarisation, before legal fees. Registration tax is 0.4% of capital, tripled in the Seoul overconcentration area.
Is there a minimum capital in Korea?
No minimum for incorporation. For the investment to be recognised as foreign direct investment, KOTRA's guide says it must be KRW 100 million or more, with 10% or more of voting shares.
Is a limited company exempt from audit in Korea?
Not fully. From fiscal years starting on or after 1 November 2018, limited companies above the size tests fall under external audit, like stock companies.
What is the corporate tax rate in Korea?
KOTRA's 2024 guide lists 9% up to KRW 200 million of tax base, 19% to KRW 20 billion, 21% to KRW 300 billion and 24% above that, plus local income tax of 10% of the corporate tax. Brackets can change, so check the National Tax Service for the current year.
Sources
Checked on the date above. Links open the provider's or regulator's own page.