1. What Is a Liaison Office?
A liaison office (연락사무소) is a representative presence of a foreign company in Korea. It allows multinational corporations to maintain an operational foothold — staffed by dispatched employees — without establishing a fully incorporated Korean entity.
Key characteristics:
- Not a separate legal entity — it operates under the foreign parent company
- Cannot engage in commercial transactions or generate revenue in Korea
- Permitted activities: market research, business promotion, information relay, supplier liaison
- Must be registered with the local tax office (세무서)
2. Liaison Office vs. Branch Office
Choosing the right structure is critical. Here is a comparison:
| Feature | Liaison Office (연락사무소) | Branch Office (지점) |
|---|---|---|
| Revenue generation | ❌ Not allowed | ✅ Allowed |
| Korean tax filing | Minimal (no revenue) | Full corporate tax |
| Registration cost | Lower | Higher |
| Dispatch visa (D-7) | ✅ Available | ✅ Available |
| Korean staff hiring | ✅ Allowed | ✅ Allowed |
3. Registration Steps
- Report to the foreign exchange bank: Submit a foreign exchange transaction report (외국환거래신고) to a designated Korean bank.
- Register with the tax office (세무서): Obtain a business registration number (사업자등록번호) — even though no taxable income is generated.
- Open a Korean bank account: Required to receive operating funds from the parent company.
- Notify relevant ministries: Depending on the industry, additional notifications to the relevant authorities may be required.
- Apply for dispatch visas: Dispatched foreign staff apply for D-7 visas at a Korean embassy or consulate abroad (or through a visa-issuance certificate obtained by the inviting entity).
4. Dispatch Visa for Dispatched Staff
Employees dispatched from the foreign parent company to the Korea liaison office require a D-7 (Intra-Company Transferee) visa, also known as the dispatch visa (파견비자).
Requirements:
- Must have worked at the parent company for at least 1 year prior to dispatch (limited exceptions apply, e.g. national key-industry projects)
- Must be dispatched to the Korean affiliate, subsidiary, branch, or office as an essential professional (executive, senior manager, or specialist)
- Supporting documents typically include a dispatch order, a copy of the branch/liaison office establishment permit or report acceptance certificate, and proof that the office is operating normally
Executives may be dispatched as essential professionals under D-7. However, persons who qualify under the corporate investment (D-8) category are excluded from D-7, so the applicable category depends on the individual's circumstances.
5. Allowed and Prohibited Activities
Allowed:
- Market research and industry analysis
- Business promotion and brand awareness
- Liaison between Korean partners/clients and headquarters
- Information collection and reporting to parent company
- Hiring Korean support staff
Prohibited:
- Signing commercial contracts in Korea
- Issuing invoices or collecting payment
- Operating as a distribution or fulfillment hub
6. Costs and Timeline
- Costs and timeline: These vary by case. Please confirm government fees and processing times with the competent tax office, bank, and immigration office.
7. Ongoing Compliance
- Fulfil any tax-office reporting obligations that apply to a non-revenue office
- Extend D-7 stay before it expires (up to 3 years per grant, renewable)
- Notify the tax office of changes to the representative or office address
- Maintain records of all operating funds received from the parent company
Vision Administrative Office
Liaison Office Setup + Dispatch Visa — Full Service
We handle the full liaison office registration process and D-7 dispatch visa applications. Consultation in Korean, English, Chinese, and Japanese.
Consultation →FAQ
Q. What is a liaison office (연락사무소) in Korea?
A. A liaison office is a non-profit representative office established in Korea by a foreign company for market research, information gathering, and business promotion activities. It cannot conduct sales or revenue-generating activities directly.
Q. What visa does a dispatched employee need for a Korea liaison office?
A. Dispatched employees typically use the D-7 (Intra-Company Transferee) visa. Persons who qualify under the corporate investment (D-8) category are excluded from D-7.
Q. How long does it take to set up a liaison office in Korea?
A. Processing time varies depending on the competent Immigration Office.
Q. Can a liaison office hire Korean employees?
A. Yes. A liaison office can hire Korean nationals as local staff, but it cannot engage in direct commercial transactions or generate revenue in Korea.
Q. What is the difference between a liaison office and a branch office in Korea?
A. A branch office (지점) can conduct commercial activities and generate revenue. A liaison office (연락사무소) is limited to non-revenue activities such as market research and communication with the headquarters.