Business Set Up.
How to do it.
also see Business types

The Time Taylor International School (TTI) is a 100% wholly foreign owned registered business operating in Korea. It is also unique in so far as it has been granted a Licence to operate as a Language school. The school was established with the legal help of EFL-Law, Seoul Law Offices and Pusan International Law Offices. There are about 120 steps to opening a school in Korea as a foreign entity. Some of the steps are outlined below.

Index.
(a) Setting Up
(b) Establishing the school
(c) Advertising
(d) revenue

{a} Setting Up
This applies to a non Korean with no Korean spouse.
There are two ways to establish a business, and it is important to understand the differences, (which in a nutshell concern taxation and taking money out of Korea.)

FDI (Foreign Direct Investment (multiples of 50,000,000 Won are required. You must set up a bank account with KEB (special holding account) where the money will come to (from your account in your home country.) NB. Your money will be tied up in the holding account pending company establishment, and you will not have access to it till then.

Other steps are:-
*registering your company name
*Taxation documents - you must go to the Taxation Office with your company documents, passport, to get Tax number)
*Court approval.
*You need to appoint a Korean auditor.
*You must also go to Immigration and receive documents (Statement of Fact) concerning any time living in Korea.
*You need to go to the Gu Office closest to where you Register your Office to Register your 'chop' = company seal. You will be fingerprinted.
*Back to Immigration to apply for your D8 visa (International Investor) - all Visa work is free and you do not have to leave the country. You will also receive a Multiple entry stamp for free.

Opening a School.
This is complex.
* First find a location.
*Once you have done that go to the Gu office to make sure the building has complied with all Building Code laws
*Go to the local Education Office to see if they will allow you to put a school there (if it is in an undesirable location, young students will not be allowed)
*Go to the local Fire Station and confirm the building complies with the Fire Codes.
*You must comply with the Hogwan Act for area space. The minimum is about 90 sq meters. Ensure you have enough space for classrooms.
*After the school is ready the Education Officers will come back and check the measurements.
*Next you need police clearance from your home country and Korea
*Finally you will be given a Hogwan licence.

Costs.
Expect to spend about 90,000,000 -150,000 Won in set up (building) fees, legal fees, licence fees, etc.

Warning.
If you purchase a school already established, do not assume that school complies with the laws. Check every requirement before signing any papers.

July 2008 Update.
The recession has caused over 600 hogwan bankruptcies in the last 3 months in Korea. The focus of TTI moved from classroom teaching to:-
a) private home schooling with fees beginning at 150,000 per lesson per person up to 190,000 for 3 students. The advantage of owning a Korean company is that you provide a Tax receipt for the legal teaching (Tax laws and Education Laws) and Koreans can claim the costs as tax deductions.
b) a school in Cebu where students from TTI go at a cost of 1.2 million Won a month
c) Private university contracts to teach 'special classes.'