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.
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.
| Stock corporation (주식회사) | Limited company (유한회사) | Sole proprietor (개인사업자) | |
|---|---|---|---|
| Separate legal entity | Yes | Yes | No — the individual is the business |
| Owner's liability | Limited to investment | Limited to investment | Unlimited, personal |
| Court registry record | Yes | Yes | None |
| Middle digits of business number | 81, 86, 87, 88 (branch: 85) | 81, 86, 87, 88 (branch: 85) | 01–79, or 90–99 if VAT-exempt |
| VAT status | Always general taxpayer | Always general taxpayer | General or simplified |
| Tax on profit | Corporate tax, 10–25% | Corporate tax, 10–25% | Personal income tax, 6–45% |
| Ask for | Registration certificate + registry extract | Registration certificate + registry extract | Registration certificate + ID match of representative |
Corporate tax rates shown apply to fiscal years beginning on or after 1 January 2026, when each bracket rose by one percentage point. A sole proprietor's business profit is simply the owner's personal income.
With a corporation, the contract is signed in the company's name by its representative director, and the corporate seal binds the company. The registry extract shows who that director is today — directors change, and an outdated business card proves nothing. With a sole proprietor there is no registry to consult: the registration certificate names the individual, and payment should go to an account in that person's name or trade name.
Size is not a reliable guide to form. Many sole proprietors run substantial export businesses, and a corporation can be a one-person company with minimal capital. Check the insured headcount in the lookup result rather than inferring scale from "Co., Ltd."
General information, not legal advice. For contract review, consult a Korean-licensed attorney.
It abbreviates 주식회사, a stock corporation — the form usually translated as Co., Ltd. or Inc. It may appear before or after the name.
Look at the middle two digits of the business registration number: 81, 86, 87 or 88 is a corporation's head office, 85 a branch, and 01–79 or 90–99 an individual business.
Not inherently. Many legitimate exporters are sole proprietors. The difference is that your counterparty is a person, there is no corporate registry record, and the contract and payment should be in that person's registered name.
In the corporate registry extract issued by the court registry. It lists the representative director, other officers, capital and the head-office address, with the history of changes.
Yes. Simplified VAT taxation is available only to sole proprietors below the sales threshold; a corporation is a general taxpayer regardless of size.