Types of Korean Companies — What the Names Actually Mean

BTSDB Guide · Business — legal forms, liability, and what to check

Korean company names carry their legal form: 주식회사 OO or (주)OO is a stock corporation, while a name with no such marker is often an individual doing business under a trade name. Knowing the difference matters — it determines who you're actually contracting with and whose assets stand behind the deal.

주식회사 (Chusik Hoesa)

Stock corporation — Korea's standard "Co., Ltd." Most established companies, all listed companies. Limited liability; separate legal entity; corporate registry record exists. In English materials it appears as "Co., Ltd." or "Inc."

유한회사 (Yuhan Hoesa)

Limited liability company — common for foreign subsidiaries (e.g. many global brands' Korean units). Similar protection, simpler governance, fewer disclosure duties.

Sole proprietor (개인사업자)

An individual registered for business. No separate legal entity — the person is the counterparty and bears unlimited personal liability. Perfectly legitimate (most small shops and many exporters), but your contract is with a person, not a company.

합자·합명회사 / 조합

Partnership forms — rare in cross-border commerce.

The middle two digits of the 10-digit business number reveal the form instantly: 81/86/87/88 = corporation head office, 85 = corporate branch, 01–79 = individual (VAT-taxable), 90–99 = individual (VAT-exempt). Full breakdown in our business-number guide. You can also just run the number through the BTSDB checker.

• Corporation: ask for the corporate registration extract (법인등기부등본) for directors and capital; the company seal binds the entity.
• Branch (85): confirm whether the branch or the head office signs — obligations may sit with the head office.
• Sole proprietor: contract and payment should be in the registered individual's name; check the representative name matches your contact.
• Any form: verify the registration is Active before payment — status changes are live in tax records.

General information, not legal advice. For contract review, consult a Korean-licensed attorney.