Korean Companies in China: Complete Legal Guide

South Korea is one of China's largest trading partners. This guide covers legal essentials for Korean companies operating in China.

Key Sectors for Korean Companies

Electronics and Technology

• Semiconductors and displays
• Consumer electronics
• Telecommunications equipment
• Software and IT services

Automotive

• Vehicle manufacturing
• Auto parts supply
• Electric vehicle components

Cosmetics and Consumer Goods

• K-beauty products very popular
• NMPA registration required
• E-commerce opportunities

Korea-China Bilateral Framework

• Korea-China Free Trade Agreement (2015)
• Bilateral Investment Treaty
• Double Taxation Agreement
• Social Security Agreement

FTA Benefits

The Korea-China FTA provides:

• Tariff reductions on many products
• Services market access commitments
• Investment protection provisions
• Rules of origin requirements

Common Legal Issues

Employment

• Large Korean expat communities in China
• Work permit requirements
• Local hiring obligations

Intellectual Property

• Trademark registration essential
• Technology protection in JVs
• Design patent for products

Dispute Resolution

• CIETAC arbitration common
• Korean Commercial Arbitration Board
• Mediation increasingly used

Regional Considerations

Korean companies often concentrate in:

• Shandong Province (geographic proximity)
• Shanghai and Yangtze Delta
• Guangdong for manufacturing