Types of Businesses in Korea and Their Differences!

Business types may seem complicated, but they are broadly divided into two categories.

📌 개인사업자

• A form of business operated alone or jointly with others.

• Self-employed individuals primarily fall into this category (business registration required!)

• Differences by Type:

  • 간이과세자: Annual revenue less than 80 million KRW. Lower tax burden.

  • 일반과세자: Annual revenue 80 million KRW or more. Standard tax application.

  • 면세사업자: Special industries without VAT (hospitals, academies, etc.).

📌 법인사업자

• A form of business operated under the name of a 'company'. (Separate from individuals)

• Differences by Type:

  • For-profit Corporation (영리법인): Purpose of profit generation and distribution.

  • Non-profit Corporation (비영리법인): Specific purposes such as public interest, academia, etc.

📌 Other:

• 성실신고확인대상자: Individual business owners with certain income levels who undergo a thorough tax reporting review.
  
  

In fact, beyond what's written above, each business type has various benefits and differences.

Treatment of expenses incurred during business operations (referring to things like tax deductions)

Treatment of profits earned during business operations (individual business owners can use it personally, but it can be different for corporate business owners)

I will write more details about each business type later.
If you have any questions, please post them on the 'Community' board~