Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the FSC permission or registration, including banking and payment rails.
Get a payment license in South Korea.
South Korea keeps electronic payments in one statute, the Electronic Financial Transactions Act of 2006. Issuing electronic money needs permission from the Financial Services Commission and KRW 5 billion of capital; everything else - funds transfer, debit and prepaid instruments, payment gateway work, escrow and electronic billing - is a registration with its own figure from KRW 300 million up. The commission decides a permission within three months and a registration within twenty days. Prepaid balances have been held outside the issuer at 100% since September 2024, and from 17 December 2026 the same treatment reaches payment gateway settlement funds.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
South Korea in brief
One permission, six registrations, and a capital table that stops at KRW 5 billion.
The Electronic Financial Transactions Act, 전자금융거래법, was enacted as Act No. 7929 on 28 April 2006 and took effect on 1 January 2007; the version in force since 15 September 2024 comes from Act No. 19734 of September 2023. Article 28 splits the market in two. Issuing and managing electronic money needs permission from the Financial Services Commission, granted to a joint-stock company with capital of at least KRW 5 billion under Article 30(1). Everything else registers: electronic funds transfer at KRW 3 billion, debit electronic payment means at KRW 2 billion, prepaid electronic payment means at KRW 2 billion, payment gateway work at KRW 300 million while the applicant stays inside the commission's quarterly volume standard and KRW 1 billion above it, escrow at KRW 300 million or KRW 1 billion, and electronic bill presentment and payment at KRW 300 million or KRW 500 million. Those figures sit in Article 17 of the Enforcement Decree. A firm applying for several of them adds the amounts together, and Article 17(4) stops the sum at KRW 5 billion.
The clocks are in Article 20 of the decree: three months from the application to decide a permission, twenty days to decide a registration, with the time the applicant spends supplementing documents excluded from both. Prepaid issuers carry the heaviest duty. Article 25-2, in force since 15 September 2024, requires the float to be placed with a bank or another management institution by trust, deposit or payment-guarantee insurance; the statute writes not less than half and the decree, as the commission describes it, requires 100%. Segregated money is the user's property, cannot be set off or attached, and users hold a priority claim over it. Small issuers stay out of the register altogether below KRW 3 billion of outstanding balance and KRW 50 billion of annual issuance. The commission counted 105 registered prepaid providers on 18 March 2025, up from 89. From 17 December 2026 Act No. 21205 extends external management to payment gateway settlement funds, phased at 60% in the first year, 80% in the second and 100% after that. Corporate tax runs 10%, 20%, 22% and 25% by bracket for fiscal years beginning in 2026, with VAT at 10%.
Electronic Financial Transactions Act (Act No. 7929 of 2006). Article 28: permission for electronic money on KRW 5 billion of capital; registration for funds transfer (KRW 3bn), debit and prepaid (KRW 2bn), payment gateway work, escrow and electronic billing from KRW 300 million. Several businesses are summed and capped at KRW 5 billion.
Decree Article 20: three months for a permission, twenty days for a registration. Prepaid float held outside the company at 100% since 15 September 2024. Exempt below KRW 3bn balance and KRW 50bn issuance. 105 registered prepaid providers in March 2025. Tax 10-25%, VAT 10%.
The routes
Electronic money by permission, everything else by registration.
Article 28 draws one line: issuing electronic money is licensed, and the other electronic financial businesses are registered. The capital figure follows the business, and a firm doing several of them adds them up to a ceiling.
Permission to issue electronic money, or registration for the other Article 28 businesses.
01 - ELECTRONIC MONEY
전자화폐 - permission under Article 28(1)
The commission's permission to issue and manage electronic money, granted to a joint-stock company with capital of at least KRW 5 billion under Article 30(1). Decided within three months of the application under Article 20(3) of the Enforcement Decree, with preliminary permission available under Article 33-2.
The commission's permission to issue and manage electronic money, granted to a joint-stock company with capital of at least KRW 5 billion under Article 30(1). Decided within three months of the application under Article 20(3) of the Enforcement Decree, with preliminary permission available under Article 33-2.
- ✓Joint-stock company · capital KRW 5,000,000,000
- ✓Decision within 3 months (Decree Article 20(3))
- ✓Preliminary permission available (Act Article 33-2)
- ✓Issued at par, exchanged for cash or deposits on request
- ✓Fit major shareholders, staff and IT under Article 31
- ✓Chief information security officer under Article 21-2
02 - REGISTERED E-FINANCIAL BUSINESS
Registration - 20 daysTransfer, debit, prepaid, PG, escrow, billing
Registration with the commission for the other Article 28(2) businesses, each with its own capital figure in Article 17 of the Enforcement Decree and a twenty-day decision. Prepaid issuance carries the Article 25-2 duty to hold the whole float outside the company.
Registrations: transfer KRW 3bn, debit and prepaid KRW 2bn, PG 300m or 1bn, escrow 300m/1bn, billing 300m/500m; summed and capped at KRW 5bn.
- ✓Electronic funds transfer KRW 3bn · debit KRW 2bn
- ✓Prepaid KRW 2bn · payment gateway KRW 300m or 1bn
- ✓Escrow KRW 300m / 1bn · electronic billing KRW 300m / 500m
- ✓Several businesses: amounts summed, capped at KRW 5bn
- ✓Prepaid float externally managed at 100% (Article 25-2)
- ✓Exempt below KRW 3bn balance and KRW 50bn annual issuance
Costs and timelines are confirmed for your case before any work begins. No official application fee is published, so state charges, the float arrangement and substance are itemised in your quote.
Why South Korea
Written figures, written clocks, and a float rule with no discretion in it.
Korea is unusually literal about payments law. The capital sits in a decree article, the decision periods sit in another, and the segregation duty was rewritten in 2024 with the next stage already dated.
✓
A licence and a ladder of registrations
Only electronic money needs permission. Funds transfer, debit, prepaid, payment gateway work, escrow and electronic billing are registrations, so most business models enter at the lower rung.Only e-money needs permission.
✓
Capital that stops at KRW 5 billion
Article 17(4) of the decree adds the figures for multiple businesses and then caps the sum at KRW 5 billion - the same number as the electronic money licence.Sums stop at KRW 5 billion.
✓
Clocks in the decree
Three months for a permission and twenty days for a registration under Article 20, with only the applicant's own document delays taken out of the count.3 months and 20 days.
✓
The float sits outside the company
Article 25-2 puts the prepaid float with a bank or another management institution by trust, deposit or guarantee insurance. Segregated money is the user's property and cannot be attached.100% with a management institution.
✓
An exemption with numbers on it
A prepaid issuer below KRW 3 billion of outstanding balance and KRW 50 billion of annual issuance stays outside the register, as does a single-merchant scheme.KRW 3bn balance, KRW 50bn issuance.
✓
The 2026 rules are already drafted
Act No. 21205 takes effect on 17 December 2026 and brings payment gateway settlement funds under external management at 60%, then 80%, then 100%. Nothing there is a surprise.PG funds at 60, 80, 100%.
How it compares
How South Korea differs from the other Asian routes.
Korea prints what its neighbours leave to practice: the capital, the clock and the segregation percentage. The trade is that the figures are firm. The honest comparison is below.
South Korea vs other jurisdictions
| Feature |  South Korea | Other jurisdictions |
|---|---|---|
| Capital | KRW 5bn e-money · from KRW 300m to register | No figure in Japan, NT$500M in Taiwan |
| Decision clock | 3 months licence · 20 days registration | None printed in Japan or Taiwan |
| Client money | 100% of the prepaid float, externally held | Half the unused balance in Japan |
| Corporate tax | 10% / 20% / 22% / 25% by bracket | 20% Taiwan · 23.20% Japan |
Capital
South KoreaKRW 5bn e-money · from KRW 300m to register
Other jurisdictionsNo figure in Japan, NT$500M in Taiwan
Decision clock
South Korea3 months licence · 20 days registration
Other jurisdictionsNone printed in Japan or Taiwan
Client money
South Korea100% of the prepaid float, externally held
Other jurisdictionsHalf the unused balance in Japan
Corporate tax
South Korea10% / 20% / 22% / 25% by bracket
Other jurisdictions20% Taiwan · 23.20% Japan
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| South Korea | E-money licence · registrations (FSC) | 10-25% from FY2026 | KRW 5bn e-money · 100% prepaid float |
 Japan | Funds transfer · prepaid (FSA) | 23.20% · 15% small | No capital figure · guarantee JPY 10M floor |
 Taiwan | E-payment institution (FSC) | 20% · dividends 21% | NT$500M · full trust or bank guarantee |
 Hong Kong | SVF (HKMA) | 8.25% / 16.5% | HK$25M, principal business |
South KoreaLicense typeE-money licence · registrations (FSC)
Taxation10-25% from FY2026
RequirementsKRW 5bn e-money · 100% prepaid float
JapanLicense typeFunds transfer · prepaid (FSA)
Taxation23.20% · 15% small
RequirementsNo capital figure · guarantee JPY 10M floor
TaiwanLicense typeE-payment institution (FSC)
Taxation20% · dividends 21%
RequirementsNT$500M · full trust or bank guarantee
Hong KongLicense typeSVF (HKMA)
Taxation8.25% / 16.5%
RequirementsHK$25M, principal business
Before you apply
Requirements for the FSC permission or registration.Requirements for the authorisation.
The act sets the vehicle and the fitness tests, the Enforcement Decree sets the capital and the clocks, and Article 20 of the decree lists the documents. The checklist below is what a passing file contains.
01
A joint-stock company for the electronic money permission, with capital of at least KRW 5 billion under Article 30(1).
02
For the registrations, a company under Article 170 of the Commercial Act - or, for prepaid instruments, a legal person established under a special act (Article 30(2)).
03
Capital at the Decree Article 17 figure for each business: KRW 3 billion for electronic funds transfer, KRW 2 billion for debit and for prepaid, KRW 300 million or KRW 1 billion for payment gateway work and escrow, KRW 300 million or KRW 500 million for electronic billing.
04
Where several businesses are applied for, the amounts added together and the sum capped at KRW 5 billion under Article 17(4) of the decree.
05
An application under Article 20 of the decree with articles of association, evidence the capital is paid, financial statements, the shareholder composition for a permission, a three-year business plan, and the staffing and facilities behind it.
06
Specialist staff, information-technology facilities, financial soundness and a workable business plan under Article 31, with major shareholders who pass the same test.
07
No disqualifying history under Article 32 - a cancelled registration inside one year, a revoked permission or registration inside three, rehabilitation proceedings, default, or a conviction under the financial laws inside three years.
08
A chief information security officer designated under Article 21-2, an executive without other IT duties where the decree says so, with vulnerability analysis of the electronic financial infrastructure reported to the commission under Article 21-3.
09
For a prepaid issuer, external management of the whole float under Article 25-2 by trust, deposit or payment-guarantee insurance with a management institution, checked by the commission every quarter.
10
From 17 December 2026, external management of payment gateway settlement funds under the new Article 25-4 at 60% in the first year and 80% in the second, and approval for any change of major shareholder within 15 days under Article 33-3.
01
Joint-stock company for e-money (Art. 30(1)).
02
Commercial Act company for registrations.
03
Capital per Decree Article 17 by business.
04
Sums capped at KRW 5bn (Art. 17(4)).
05
Decree Article 20 documents and plan.
06
Staff, IT, soundness, shareholders (Art. 31).
07
No disqualifying history (Art. 32).
08
CISO under Article 21-2; vulnerability report.
09
Prepaid float 100% external (Art. 25-2).
10
From Dec 2026: PG funds 60% then 80%.
Reflects the Electronic Financial Transactions Act (Act No. 7929 of 2006, as amended by Act No. 19734 of 2023 and Act No. 21205 of 2025) and its Enforcement Decree, as of 2026.EFTA (Act No. 7929 of 2006; Act No. 19734 of 2023; Act No. 21205 of 2025) and its Enforcement Decree.
How it works
From first call to the FSC register.
01
Route and capital
Permission or registration; which Article 28 businesses; the capital figure and the KRW 5 billion cap applied - fixed in writing.Permission or registration, in writing.
02
Company and shareholders
Korean joint-stock company formed, capital paid and evidenced, major shareholders documented against Article 32.Formed, paid, documented.
03
The application file
Article 20 documents, the three-year business plan, staffing, IT facilities and the float arrangement described.Article 20 documents and plan.
04
FSC review
Three months for a permission, twenty days for a registration, both pausing while the commission waits on you - plan on six to nine months end to end.3 months or 20 days; 6-9 realistic.
05
Registration and launch
Entry on the register, the float placed with a management institution, and the quarterly reporting calendar running.Float placed, reporting running.
Quick facts
RegulatorFinancial Services Commission
LawElectronic Financial Transactions Act (2006)
RoutesE-money permission · six registrations
CapitalKRW 5bn e-money · from KRW 300m
Decision3 months · 20 days
Prepaid float100% externally managed
Timeline6-9 months realistic
Corporate tax10-25% · VAT 10%
Three months and twenty days are the decree's numbers, and both stop while the commission waits for documents from you. That is where applicants lose the time the statute gives them.
Your South Korea desk
Run from our Asia-Pacific desk.
Prifinance - Asia-Pacific desk
Dubai · coordinating Korean mandates
33 Level, Al Saqr Business Tower, Dubai
01
Korean company formation
A joint-stock company with capital paid to the Article 30 or Decree Article 17 figure and the shareholder composition documented for the file.Joint-stock company, capital paid.
02
The FSC file
Articles of association, capital evidence, financial statements, the three-year business plan, staffing and facilities under Article 20 of the decree.Decree Article 20 documents.
03
Float and settlement
The Article 25-2 trust, deposit or guarantee-insurance arrangement with a management institution, and the December 2026 payment gateway rules planned into it.Trust, deposit or guarantee insurance.
04
Substance in Korea
Specialist staff, IT facilities, a chief information security officer and major shareholders who pass the Article 31 test.Staff, IT, CISO, shareholders.
We also have offices in
Tallinn
Estonia
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Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of payment companies in South Korea.
Four corporate brackets from 10% to 25% for fiscal years beginning in 2026, VAT at 10%, and two rates we will not quote because the tax service does not publish them where we can read them.
Corporate tax 10%
On the first KRW 200 million of taxable income, for fiscal years beginning on or after 1 January 2026. Smaller companies in the tax service's own category start at 20% instead.First KRW 200 million.
The 20% bracket
From KRW 200 million to KRW 20 billion, with a progressive deduction of KRW 20 million applied against the calculated tax.KRW 200m to 20bn.
22% and 25%
From KRW 20 billion to KRW 300 billion the rate is 22%, and above KRW 300 billion it is 25%, each with its own progressive deduction.Above KRW 20bn and 300bn.
VAT 10%
The rate for a general taxpayer across every sector. Which of your fees are exempt financial services and which are technology is mapped before pricing.General taxpayers, all sectors.
Local income tax
The local surtax is not printed on the National Tax Service pages we can reach, so we confirm it for your structure rather than quote a figure.Not on reachable official pages.
Dividends abroad
The tax service states that the domestic withholding rate applies and may not exceed the treaty limit, without printing the rate on a page we can reach. It is confirmed against your treaty before any distribution.Treaty limit; rate confirmed.
Tax summary
Corporate tax10% / 20% / 22% / 25%
BracketsKRW 200m · 20bn · 300bn
Small companies20% / 22% / 25%
VAT10%
Local income taxNot on the reachable official pages
Dividend withholdingTreaty limit applies · rate confirmed
*Figures as of 2026 per the National Tax Service. Where a rate is not published on a page we can reach, we say so rather than quote one.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Korean joint-stock company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed institution.
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The Korean payment authorisation, answered.
What authorisation does a payment business need in South Korea?+
Permission from the Financial Services Commission to issue and manage electronic money, or registration with it for the other Article 28 businesses: electronic funds transfer, debit and prepaid electronic payment means, payment gateway work, escrow and electronic bill presentment and payment.
How much capital is required?+
KRW 5 billion for the electronic money permission under Article 30(1). Article 17 of the Enforcement Decree then sets KRW 3 billion for funds transfer, KRW 2 billion for debit and for prepaid, KRW 300 million or KRW 1 billion for payment gateway work and escrow, and KRW 300 million or KRW 500 million for electronic billing.
What if we apply for several businesses at once?+
The figures are added together. Article 17(4) of the decree then caps the sum at KRW 5 billion, so a firm holding four or five registrations never needs more capital than an electronic money issuer.
How long does the commission take?+
Three months to decide a permission and twenty days to decide a registration, under Article 20 of the decree. Time the applicant spends supplementing documents is excluded, so on a real file plan on six to nine months from first call.
How is the prepaid float protected?+
Article 25-2 requires it to be placed with a bank or another management institution by trust, deposit or payment-guarantee insurance. The act writes not less than half; the decree, as the commission describes it, requires 100%. Segregated money is the user's property and cannot be set off or attached.
Is there an exemption from registration?+
Yes. A prepaid issuer whose instruments are used at a single merchant, or whose outstanding balance stays under KRW 3 billion and whose annual issuance stays under KRW 50 billion, is outside the registration duty under Article 28(3).
What changes on 17 December 2026?+
Act No. 21205 brings payment gateway settlement funds under 100% external management through the new Article 25-4, phased at 60% in the first year and 80% in the second. It also redefines payment gateway work, adds a settlement deadline, and requires approval for a change of major shareholder.
Can a foreign group own the licensee?+
The act applies to foreign nationals and foreign corporations with a reciprocity carve-out in Article 4, and we found no foreign-ownership cap in the act or the decree. Major shareholders are still assessed under Articles 31 and 32.
How are payment companies taxed?+
Corporate tax at 10%, 20%, 22% or 25% by bracket for fiscal years beginning in 2026, with VAT at 10%. The local income tax surtax and the domestic dividend withholding rate are not printed on the tax service pages we can reach, so both are confirmed for your structure.
Why South Korea rather than Japan or Taiwan?+
Korea prints the capital, the decision periods and the segregation percentage, which makes it the easiest of the three to budget. Japan asks for no capital figure on the transfer side but gives you no clock. Taiwan is cheaper to run at NT$100 million if you skip stored value and remittance.
Which authorisation?+
E-money permission or Article 28 registration.
Capital?+
KRW 5bn e-money; from KRW 300m to register.
Several businesses?+
Summed, capped at KRW 5bn.
How long?+
3 months or 20 days; 6-9 months realistic.
Prepaid float?+
100% external under Article 25-2.
Exemption?+
KRW 3bn balance, KRW 50bn issuance.
Dec 2026?+
PG settlement funds 60%, 80%, 100%.
Foreign owners?+
No cap found; shareholders assessed.
Taxes?+
10-25% by bracket, VAT 10%.
vs Japan / Taiwan?+
Korea prints capital and clocks.
Client notes
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