FAQ of Starting a Business in Korea

1. Question: "Could you provide information about healthcare facilities and emergency services in Korea?"

   1. Answer: "With exceptions of digestives, cold medicines, vitamins, etc., you need a doctor’s prescription for drugs and medicines. More and more local hospitals are providing interpretation services to foreign patients. You can call Seoul Health Center at 119. Interpretation services are provided in English, Chinese, Japanese, Mongol, and Vietnamese. The center provides consultation, medical, and ambulance service."

2. Question: "Can you explain the healthcare system for foreign residents in Korea?"

   1. Answer: "Korea is known for its well-developed medical care system. Korean nationals pay monthly National Health Insurance (NHI) fee and receive generous aid when they get ill. Foreigners also can enjoy Korea’s medical care system. However, there have been recent changes made in terms of qualifications. Foreigners could apply and become a member of National Health Insurance if he or she had stayed in Korea for at least 3 months. However, in October 2018, the Ministry of Health and Welfare increased the minimum period of stay to 6 months. Also, only the spouse and under-aged children are covered with a foreigner’s insurance. Once you have stayed in Korea for 6 months, you can apply for NHI membership as an employee or as a local resident."

3. Question: "Could you tell me about Meister Schools and their purpose?"

   1. Answer: "Meister Schools are high schools founded and run to meet industrial demands. Its curriculum is focused on vocational and technical education. When students graduate from Meister schools, they find jobs in various fields of industries instead of going directly to college. Since its curriculum is rigorous and practical and the applicants are those with relatively high grades during middle school, Meister school graduates are competitive labor prepared for jobs in the field of their expertise. They may meet the needs of foreign entrepreneurs looking for competent local labor."

4. Question: "Please describe the approaches used for hiring local employees, including online and offline methods."

   1. Answer: "For online recruitment, there are several locally well-known job matching sites. They are Jobkorea, Saramin, Job planet, Alba.co.kr, Albamon, Worknet, Incruit, etc. Pearson & Partners makes public announcements for recruitment on behalf of foreign-invested enterprises. We collect resumes and accumulate a pool of local labor in the process."

5. Question: "Could you explain what a Free Economic Zone is and its significance in Korea?"

   1. Answer: "Free Economic Zones are special designated areas within Korea that offer various benefits to businesses such as tax incentives, streamlined customs procedures, and simplified regulations to promote foreign investment and economic growth."

6. Question: "Could you elaborate on the importance of New Growth Engine and Source Technology?"

   1. Answer: "There is a total of 47 Meister schools across the country, and each one of them is specialized in a specific field of industry. Some of those categories include Machinery, Automobile, Shipbuilding, Steel, New Media, Biotech, Semiconductor, Electronics, Mobile, Nano technology, Energy, Medical devices, Aerial, Logistics, Global business, Maritime, Robot, Eco-friendly agriculture•stockbreeding, Fishery• marine products processing, Food products, Petrochemistry, Horse industry, Overseas construction •Plant, Off-shore plant, Software, etc."

7. Question: "Can you provide details about the OASIS program designed to assist foreign entrepreneurs in obtaining a D-8-4 visa?"

   1. Answer: "The OASIS program, which stands for Overall Assistance for Startup Immigration System, is a government support program to help foreign entrepreneurs acquire the D-8-4 (Technology and Business Startup) visa. To be eligible, applicants must have a Bachelor’s degree, incorporate a local company, and earn 80 points or more out of the total 360 points in the OASIS program. Points are awarded based on various criteria, such as intellectual property registration, academic qualifications, language proficiency, and participation in specific courses and exhibitions related to start-up and innovation. The OASIS program aims to facilitate the entry of foreign entrepreneurs and support their business ventures in Korea."

8. Question: "Please explain the purpose and function of the Alien Registration Card for foreign residents."

   1. Answer: "The Alien Registration Card is an identification card issued to foreign residents in Korea. It contains personal information and is required to be carried at all times as proof of legal residence."

9. Question: "Could you outline the distinctions between a Stock Company and a Limited Liability Company?"

   1. Answer: "The difference between a Stock Company and a Limited Liability Company lies in their ownership structure, liability, and management. A Stock Company has shares distributed among shareholders, and their liability is limited to the value of the shares they hold. On the other hand, a Limited Liability Company has members instead of shareholders, and their liability is limited to the amount they invest in the company. The management structure also differs, with a Stock Company being managed by a board of directors and a Limited Liability Company being managed by its members."

10. Question: "Please clarify the contrasts among a Local Corporation, Branch, and Liaison Office."

    1. Answer: "A Local Corporation, Branch, and Liaison Office are different types of business entities in Korea. A Local Corporation is an independent legal entity that can conduct business on its own, while a Branch is an extension of a foreign company and operates under the same legal identity. A Liaison Office, on the other hand, is a non-profit entity that serves as a representative office for a foreign company and is limited in its activities to market research, liaison work, and promoting business relationships."