Business Reforms in Korea, Rep.
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Starting a Business: The Republic of Korea made starting a business faster by eliminating post-registration procedures.
Paying Taxes: The Republic of Korea made paying taxes more complicated and costly for companies by requiring separate filing and payment of the local income tax and by increasing the rates for unemployment insurance and national health insurance paid by employers.
Registering Property: The Republic of Korea made transferring property easier by reducing the time needed to buy housing bonds and to register the property transfer.
Protecting Minority Investors: The Republic of Korea strengthened minority investor protections by increasing the level of transparency expected from companies on managerial compensation.
Getting Credit: Korea revised its secured transactions framework by creating new types of security rights that can be publicized through registration.
Getting Electricity: Korea made getting electricity less costly by introducing a new connection fee schedule and an installment payment system.
Protecting Minority Investors: Korea strengthened investor protections by making it easier to sue directors in cases of prejudicial related-party transactions.
Paying Taxes: Korea made paying taxes less costly for companies by reducing the profit tax rate.
Resolving Insolvency: Korea expedited the insolvency process by implementing a fast track for company rehabilitation.
Starting a Business: Korea made starting a business easier by introducing a new online one-stop shop, Start-Biz.
Paying Taxes: Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and contributions to be paid jointly and continuing to increase the use of the online tax payment system.
Enforcing Contracts: Korea made filing a commercial case easier by introducing an electronic case filing system.
Resolving Insolvency: Korea made it easier to deal with insolvency by introducing postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization.
Starting a Business: Korea made starting a business easier by reducing costs, allowing online payment of registration taxes, setting time limits for value added tax registration and eliminating the minimum capital requirement and notarization requirements.
Paying Taxes: Korea accelerated its corporate income tax reduction program, shortening it from 5 years to 3.
Trading across Borders: Korea made trading across borders easier by upgrading the electronic data interchange system.
Labor Market Regulation: Korea increased the maximum duration of fixed-term contracts.