Investing in Türkiye from Korea: company, tax and social security
Setting up a company in Türkiye as a Korean investor: apostille and translation, the double tax treaty applied from 2025, the social security agreement, the free trade agreement and work permits.
Citizens of the Republic of Korea and companies established in Korea can set up a limited or joint stock company in Türkiye, become a shareholder in an existing company, or open a branch or liaison office. Foreign Direct Investment Law No. 4875 gives foreign investors equal treatment with Turkish investors; no prior approval is needed. This article sums up the points specific to Korea.
Agreements between the two countries
| Agreement | South Korea |
|---|---|
| Double tax treaty | Signed: 22 October 2021 Official Gazette: 1 June 2024, issue 32563 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 14 May 1991 Official Gazette: 14 December 1993 |
| Social security agreement | In force (since 1 June 2015) |
| Apostille (Hague Convention) | Applies (since 14 July 2007) |
| Framework agreement on a free trade area | Signed: 1 August 2012 Official Gazette: 24 January 2013 |
Sources: Ministry of Trade, bilateral agreements · Ministry of Labour and Social Security, social security agreements · Hague Conference, Apostille Convention status table. Last checked: 4 November 2026.
Tax: the new treaty applies since 2025
The new double tax treaty signed by Türkiye and Korea in 2021 applies to income derived from 1 January 2025 and replaces the old treaty of 1983. Turkish withholding tax on dividends paid by a Turkish company to its shareholder in Korea is limited to 10% for companies holding directly at least 25% of the capital, and 15% in other cases.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| South Korea | 10% – 15% | 10% | 10% |
For the reduced rate to apply, the shareholder's residence certificate issued by the Korean tax authority must be held by the Turkish company before payment. More: Dividend distribution tax · Residence certificate
Documents: apostille and translation
Korea and Türkiye are both parties to the Hague Apostille Convention. If a Korean company is to be a shareholder, its commercial registry extract, the board resolution and the power of attorney receive an apostille in Korea; no consular legalisation is needed. Documents in Korean are translated into Turkish by a sworn translator in Türkiye and certified by a notary. For individual shareholders, a notarised Turkish translation of the passport is enough; the name is used in records exactly as written in Latin letters in the passport. Steps: Company formation for foreigners
Social security: employees posted temporarily
The Türkiye–Korea social security agreement has been in force since 1 June 2015. An employee temporarily sent to Türkiye by an employer in Korea can remain insured in Korea for the period set in the agreement; a certificate of coverage obtained from the Korean institution is submitted to the SGK. Without the certificate, or once the period ends, the employee is registered with the Turkish SGK. Which branches of insurance the agreement covers should be checked in the agreement text.
A Korean employee hired in Türkiye is subject to the Turkish SGK. A work permit is needed in both cases. Social security of foreign employees · Work permit criteria
Trade: free trade agreement
The framework agreement establishing a free trade area between Türkiye and Korea was signed in 2012. To benefit from reduced customs duty on goods of Korean origin, a proof of origin is required on import; conditions depend on the product. Customs and foreign trade
Bank account and capital
The company account is opened with a bank in Türkiye. Transferring the capital from abroad through a bank creates a record for later profit transfers and foreign capital reporting. Reporting by foreign-owned companies
Sources
- Agreement dates: the Ministry of Trade, Ministry of Labour and Social Security and Hague Conference lists below the table.
- Text and start date of the new tax treaty: Treaty rates and country pages
- General process: Services for foreign investors