Acquisition for non-profit purposes

– It is possible to acquire land without establishing a separate branch or corporation.
However, in this case, leasing land or conducting other profit-making activities is not
allowed.
Acquisition for profit-making purposes
– According to Art. 614 of the Commercial Act, it is obligatory to establish a branch or
corporation.
Art. 614 of the Commercial Act
– According to Art. 614 of the Commercial Act, it is obligatory to establish a branch or
corporation.
Art. 614 of the Commercial Act
– Paragraph 1: A foreign company intending to engage in business in the Republic of
Korea shall appoint a representative in the Republic of Korea and shall establish a
business office.

If a foreign company establishes a separate branch or corporation after acquiring real estate for the purpose of lease or other profit-making activities, the company has to pay acquisition and registration tax when changing the ownership of the real estate. For that reason, it is recommended to acquire real estate after establishing the branch or corporation in order to avoid the payment of the taxes.In recent days, companies conclude contracts of sale & lease due to lack of capital. This also is a profit-making activity and therefore the foreign company needs to set up a branch or company in Korea.

– Even if a foreign company does not have a business office in Korea, it is possible to
register the acquired real estate. The registration number for real estate registration
can be obtained at the competent city/”gun” (county)/”gu” (district) office.

Required documents for the issuance of a registration number are: corporate registration issued by the relevant country, proof of the status and address of the representative.