Insights
Korea tax, payroll and compliance, explained
Practical notes for foreign companies setting up and operating in Korea, written by Matt Shin, CPA. Each article comes with a one-minute video summary.
VIDEO · 1 MINIndustry Classification: What Will Your Korean Subsidiary Actually Do?
Before you incorporate in Korea, decide what the subsidiary will actually do. The industry code shapes licences, tax office benchmarking and tax incentives.
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VIDEO · 1 MINCash Settlement Method vs Accrual Accounting Method
A worked example of how the cash settlement and accrual methods for unused annual leave change expenses and liabilities year by year in Korea.
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VIDEO · 1 MINUnused Annual Leave Accruals under Korean Labor Law and Accounting Principles
Unused annual leave in Korea touches payroll tax, social insurance, retirement pensions and year-end liabilities. What finance teams should check.
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VIDEO · 1 MINUnderstanding Korean Social Insurance Contributions: Payroll Recognition, Year-End Reconciliation and Accounting Considerations
How Korea's four social insurance programs are billed, why notices differ from payroll calculations, and how to reconcile contributions at year-end.
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VIDEO · 1 MINAddress Selection: One of the First Decisions When Establishing a Korean Subsidiary
Why the registered office address is one of the first decisions when setting up a Korean subsidiary, and when a shared office can delay registration.
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VIDEO · 1 MINWhy Many Foreign Companies in Korea Still Maintain a Local Korean Bank Account
Global banks suit group treasury, but a foreign-bank-only setup in Korea complicates social insurance debits, tax payments and tax refunds.
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VIDEO · 1 MINIs a Cost-Plus Fee Arrangement Subject to 0% VAT in Korea?
When does a Korean sales support entity's cost-plus fee qualify for 0% VAT? The four conditions, and why the reciprocity test is often missed.
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