Would you like me to draft a formal engagement letter based on a specific capital amount (e.g., KRW 100M)?

Based on your request, here is a formal engagement framework for establishing a South Korean Subsidiary (Foreign Direct Investment) as of April 2026. This proposal is designed to integrate seamlessly with your existing regional operations in Singapore and Hong Kong.

Engagement Letter: Establishment of South Korean Entity

To: The Board of Directors / Management Date: April 2, 2026 Subject: Fee Proposal for South Korea Market Entry & Compliance

1. Scope of Phase I: Incorporation & FDI Setup

Bestar Asia will act as the lead consultant for the formation of a Joosik Hoesa (Stock Corporation) with a target capital of KRW 100,000,000.

Service Description	Professional Fee (USD)
Foreign Investment Declaration	$1,500
Mandatory reporting to a designated FX bank under the Foreign Investment Promotion Act.
Corporate Incorporation (Court Registry)	$5,000
Drafting Articles of Incorporation, appointing directors, and securing the Corporate Seal.
Business Registration (NTS)	$800
Obtaining the Business Registration Certificate for VAT and tax purposes.
Corporate Bank Account Opening	$1,200
Assistance with the capital deposit account and conversion to a corporate operating account.
Subtotal (Professional Fees)	$8,500

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Note on Government Taxes: Registration tax in Seoul is typically 1.44% of capital (tripled in "Overconcentration Control Zones"). For KRW 100M capital, expect approximately $3,500 – $4,000 USD in statutory taxes/stamps.

2. Scope of Phase II: Investor Visa (D-8-1)

For foreign executives relocating to manage the Korean entity.

• Professional Fee: $3,000 USD (First Applicant).

• Deliverables: Preparation of the investment report, dispatch orders, and coordination with the Korean Consulate/Immigration Office.

• 2026 Update: Includes the mandatory "Proof of Capital Source" audit now required for all D-8 applicants.

  
  

3. Scope of Phase III: Ongoing Annual Compliance

To maintain "Audit-Ready" status, we provide a unified monthly retainer.

Service	Frequency	Monthly Fee (USD)
AI-Powered Bookkeeping	Monthly	$550
Quarterly VAT Filing	Quarterly	$150 (Avg/mo)
Corporate Secretary & Registered Office	Annual	$250 (Avg/mo)
Payroll (up to 5 staff)	Monthly	$200
Total Monthly Retainer		$1,150

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4. Summary of Estimated Initial Investment

To initiate the incorporation in Seoul with a D-8 Visa:

1. Professional Fees (Setup + Visa): $11,500

2. Government Taxes (Estimate): $4,000

3. Minimum Capital (Paid-in): $75,000 (KRW 100M)

   
   

4. Total Initial Liquidity Required: ~$90,500 USD

5. Terms of Engagement

• Payment Schedule: 50% of Phase I fees due upon signing; 50% upon issuance of the Business Registration Certificate.

• The "Bestar Migration" Credit: Since you are an existing regional partner, we will waive the $1,500 FDI Reporting Fee if the annual compliance retainer is signed alongside the incorporation.

• Currency: Fees are quoted in USD for regional consistency but may be settled in SGD or KRW at the prevailing mid-market rate.

Next Steps for Execution

To proceed, please confirm the following:

1. Desired Entity Name (We will conduct a Hangeul availability search).

2. Passport Copy of the proposed Director(s).

3. Capital Source Proof (A simple bank statement showing the KRW 100M equivalent).

Shall I prepare the formal PDF version of this Engagement Letter for your electronic signature?