The exit tax cost (i.e. the inability to take certain tax benefits and/ or actual tax) of a foreign invested company may depend on the entity’s business type, capital structure and location of the company. Careful planning is required to develop a tax-efficient exit strategy prior to making an investment in Korea.
A foreign invested company can minimize tax costs and maximize after tax cash inflow by qualifying for tax reductions or exemptions at the beginning of the foreign investment.
We have accumulated significant experience designing and setting up tax efficient investment structures that foreign investors can use as a vehicle for making investments into Korea.