Can foreigners freelance or be self-employed in Korea?

Yes, foreigners can freelance or be self-employed in Korea but only on specific visas. Working freelance on an unauthorized visa is illegal and can lead to deportation.

Visas that allow freelancing or self-employment. F-2 (Long-term Residence), F-5 (Permanent Residence), F-6 (Marriage), F-4 (Overseas Korean), D-7 with extensions, and D-10 (Job Seeker, limited). The D-8 (Corporate Investment) and D-9 (Trade Management) are for those running their own businesses. The D-10 Startup Visa is for entrepreneurs with specific qualifications.

E-series visas (E-1 to E-7) are typically tied to a specific employer and do not allow independent freelancing. Some E-series visas allow side work with employer permission and immigration approval, but the default is restricted to the sponsoring employer.

If you have a permitted visa, here are the basics of self-employment.

Business registration. Register your business at the local tax office (세무서) or online via Hometax. As a freelancer (1인 사업자), you can register as either an individual business (개인사업자) or a corporation (법인). Most freelancers start as individual businesses. Registration takes 10 to 30 minutes.

Tax obligations. Pay quarterly VAT (부가가치세) if you exceed certain thresholds. Annual income tax (종합소득세) is filed every May for the previous year. Withholding tax (3.3 percent) is typically deducted from client payments if you invoice as an independent contractor.

Health and pension insurance. Self-employed people pay full NHIS and NPS contributions themselves, calculated based on declared income. Expect around 10 to 15 percent of net income going to these.

Issuing tax invoices. For B2B clients, you must issue electronic tax invoices (세금계산서) via Hometax. For B2C, simplified receipts (현금영수증) suffice.

Many expats hire a local accountant (세무사) for 50,000 to 200,000 won per month who handles invoicing, tax filings, and compliance. Worth it once you have steady client income.