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Bretclev06
Joined: 06 Sep 2010
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 Posted: Tue Sep 14, 2010 11:38 pm Post subject: Opening a small business in South Korea |
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I've searched a few pages back, and haven't seen any information on this.
Does anyone have any experience opening their own small business in Korea?
I'm aware of the standard way to go about it, (50 mil investment, D-8 visa status.) but it seems more like the standard procedure for a major company opening up in the country, and not really viable for a small restaurant/bar/academy/whatever.
Here's the best site I've seen with this information. http://www.efl-law.com/business-setup.php
I've heard a few of the foreigners who own businesses here do it by having a Korean partner who officially owns the business. Does anyone know the details of this? What visa would you stay in the country on? Would you technically be an employee at that business? Are you allowed to be a joint-partner without going through all the single-owner hoops?
Just looking for some information from anyone with experience. |
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Afghankush
Joined: 12 Aug 2010
Location: Seoul
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| Posted: Wed Sep 15, 2010 12:32 am Post subject: Re: Opening a small business in South Korea |
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| Bretclev06 wrote: |
I've heard a few of the foreigners who own businesses here do it by having a Korean partner who officially owns the business. |
I personally know of two mightey whities that have lost their entire
investments by doing business like this.
First, if the business goes south, the Korean partner will screw you.
Guaranteed.
Second, What kind of business sense is giving another person control
of your investment??? Would you do this in your home country? Why
would you do it in a country full of strangers? |
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air76
Joined: 13 Nov 2007
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| Posted: Wed Sep 15, 2010 12:46 am Post subject: Re: Opening a small business in South Korea |
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| Bretclev06 wrote: |
| I'm aware of the standard way to go about it, (50 mil investment, D-8 visa status.) but it seems more like the standard procedure for a major company opening up in the country, and not really viable for a small restaurant/bar/academy/whatever. |
Actually, no....50 million won is hardly enough money to get a small business off the ground, let alone a major company. What do you mean that it isn't viable? If you are so unaware of the value of $50,000 in business terms then you may not be cut out for owning your own business. In general 50 grand will not be enough to get a business off the ground....maybe it would be enough if you work full time teaching as well and don't need to live off the profits from your business for a year or two.
Unless you've got family here, I can't imagine starting a business with someone that I'd known for less than a year or two and putting the entire thing in their name. I am sure that there are many success stories from people who ran a business this way, but it sounds like a recipe for disaster. |
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Wed Sep 15, 2010 2:31 am Post subject: |
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| Quote: |
| I'm aware of the standard way to go about it, (50 mil investment, D-8 visa status.) but it seems more like the standard procedure for a major company opening up in the country, and not really viable for a small restaurant/bar/academy/whatever. |
No that's exactly the way to go about it for whatever small business you want to start here. There is no other visa to do it on unless you're married to a Korean/a Gyopo.
and if you wanted to do it, you might want to get the visa soon as they're about to crank the investment amount up to 100 million.
| Quote: |
| Actually, no....50 million won is hardly enough money to get a small business off the ground, let alone a major company. |
That depends highly on the business. A restaurant, Hagwon, etc. sure.
a "consulting" business as D8s are sometimes used for, not as much. There isn't a lot of start-up cost involved in those kinds of businesses and if you've already built up some business to step into when you start, then it's more than viable. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Sep 15, 2010 2:34 am Post subject: Re: Opening a small business in South Korea |
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| Bretclev06 wrote: |
I've searched a few pages back, and haven't seen any information on this.
Does anyone have any experience opening their own small business in Korea?
I'm aware of the standard way to go about it, (50 mil investment, D-8 visa status.) but it seems more like the standard procedure for a major company opening up in the country, and not really viable for a small restaurant/bar/academy/whatever.
Here's the best site I've seen with this information. http://www.efl-law.com/business-setup.php
I've heard a few of the foreigners who own businesses here do it by having a Korean partner who officially owns the business. Does anyone know the details of this? What visa would you stay in the country on? Would you technically be an employee at that business? Are you allowed to be a joint-partner without going through all the single-owner hoops?
Just looking for some information from anyone with experience. |
50 million WAS the investment (up to 100 million now).
Major players start at 500 million and go up (fast).
In terms of what you get for your 50 million - it will barely get you a leased space to put your business in.
Then you need capital (read money) for renovations, finishing, stock and equipment.
Then you need MORE money for operating capital.
100 million gets your feet in the door but by no means will be any guarantee of success. Even a small mom/pop grocery needs more than 50 million to get started - 20 million or more of that is just inventory and doesn't include the deposits.
If you still think you have what it takes, make a trip to the Seoul Global Center ( http://global.seoul.go.kr/ ) and get some real and accurate information about start-ups in Korea.
You might also want to look at "foreign investment protected categories" (where you CAN'T invest) or restricted (where your investment is strictly limited (usually less than 50% control but in some cases as low as 15% can be controlled by a foreigner).
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wooden nickels
Joined: 23 May 2010
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| Posted: Wed Sep 15, 2010 6:13 am Post subject: Re: Opening a small business in South Korea |
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| Bretclev06 wrote: |
I've searched a few pages back, and haven't seen any information on this.
Does anyone have any experience opening their own small business in Korea?
I'm aware of the standard way to go about it, (50 mil investment, D-8 visa status.) but it seems more like the standard procedure for a major company opening up in the country, and not really viable for a small restaurant/bar/academy/whatever.
Here's the best site I've seen with this information. http://www.efl-law.com/business-setup.php
I've heard a few of the foreigners who own businesses here do it by having a Korean partner who officially owns the business. Does anyone know the details of this? What visa would you stay in the country on? Would you technically be an employee at that business? Are you allowed to be a joint-partner without going through all the single-owner hoops?
Just looking for some information from anyone with experience. |
How much do you have/plan to invest? 100 million? 250 million? A gahundredzillion?
What kind of small business are you specifically considering? |
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SeoulNate
Joined: 04 Jun 2010
Location: Hyehwa
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| Posted: Wed Sep 15, 2010 8:56 am Post subject: Re: Opening a small business in South Korea |
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| wooden nickels wrote: |
A gahundredzillion?
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made me giggle. |
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Joe Boxer
Joined: 25 Dec 2007
Location: Bundang, South Korea
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| Posted: Wed Sep 15, 2010 3:18 pm Post subject: Re: Opening a small business in South Korea |
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| Afghankush wrote: |
| Bretclev06 wrote: |
I've heard a few of the foreigners who own businesses here do it by having a Korean partner who officially owns the business. |
I personally know of two mightey whities that have lost their entire
investments by doing business like this.
First, if the business goes south, the Korean partner will screw you.
Guaranteed. |
Don't forget that if the business goes north you may also get screwed by your partner. |
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kprrok
Joined: 06 Apr 2004
Location: KC
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| Posted: Wed Sep 15, 2010 3:26 pm Post subject: |
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| OP, you do know that the 50mil is in Korean Won, not USD, right? If not, that would be the first thing to understand. |
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nathanrutledge
Joined: 01 May 2008
Location: Marakesh
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| Posted: Wed Sep 15, 2010 4:51 pm Post subject: |
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I know a couple different foreigner owned restaurants. One is foreigner owned, the other was Korean owned (legally).
The Korean owned one, the legal owners were the dishwashers and busboys. It didn't take long for them to realize their powerful position, demand a larger cut and when it was refused, they didn't come to work. The white guys took all that they could and left the country. Of course, the funny thing (to me) is that the white guys were not EVEN the ones who put up the money! It was another foreigner who had other things to do. He came back, found out his money was gone, the dishwashers were looking for him, the other white guys had fled... HA!
So don't ever consider NOT being the legal owner who controls everything. It can and will blow up in your face, not to mention, if you're not, it's illegal so you'd have no recourse if it started to blow up.
The foreigner owned restaurant on the other hand, it's taken about 1 whole year to get the visas all squared away. First of all, the Korean government is not the friendliest towards foreign businesses, and they don't go out of their way to help you. Getting the initial D8 visa was a real headache. Then, only one of the three guys could have the D8 so the other two were left trying to get the D7 (the foreign cook visa?). Of course, to bring in foreign workers, you have to be classified as a tourist restaurant, which has its own set of rules. Needless to say, it took about a year to get it all done. During the first few months of the process, they were counting their pennies, they succeeded by the skin of their teeth.
Long story short, 50 mil doesn't go far, 100 mil gets you closer,be your own boss, don't expect much help from the govt in getting the visa. |
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HomebrewKorea
Joined: 18 Mar 2010
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| Posted: Wed Sep 15, 2010 6:27 pm Post subject: |
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| One thing to note, the powers that be are planning on upping that 50 million won to 100 million in October, see this article. |
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