Invest KOREA

A stock-listed corporation, a company that intends to be a stocklisted corporation, and other companies that meet the standards prescribed by Presidential Decree in terms of assets, liabilities, number of employees, or sales at the end of the immediately preceding business year shall undergo an audit performed by an external auditor. In this regard, foreign-invested companies that meet certain criteria4) are subject to external audit just as purely domestic companies are. From the business commencement year starting on November 1, 2019 or after, limited companies shall also receive an external audit. Limited companies that transitioned from stock companies on November 1, 2019 or after should meet the external audit requirements for the following five years from the date of registration of the change5). < Companies subject to external audit6) >

Foreign-invested companies bear the same tax burden as domestic companies. In general, corporations are subject to corporate tax, corporate local income tax, value-added tax (VAT), and additional taxes that may be imposed on specific cases according to tax laws. ◎ Corporate tax: Different tax rates based on the amount of corporate income – KRW 200 million and below: 10% – Above KRW 200 million and up to KRW 20 billion: 20% – Above KRW 20 billion and up to KRW 30 billion: 22% – Above KRW 30 billion: 25% ◎ Corporate local income tax: Different tax rate based on the amount of corporate income – KRW 200 million and below: 1% – Above KRW 200 million and up to KRW 20 billion: 2% – Above KRW 20 billion and up to KRW 30 billion: 2.2% – Above KRW 30 billion: 2.5% ◎ VAT: 10%