10 Things Korean Businesses Should Know Before Expanding to the U.S.

Korean companies — from Samsung and Hyundai down to Pangyo startups — have made the crossing into the U.S. market successfully. Here are ten things to get right early, drawn from our free guide, New Ground: U.S. Law Essentials for Korean Businesses.

There's no single U.S. commercial code. Unlike Korea's national Commercial Act, each of the fifty states has its own corporate law. Most companies raising outside capital still choose to incorporate in Delaware for its predictable case law and specialized business courts.
Choose a subsidiary, not a branch. A branch office is simpler to set up, but it exposes your entire Korean company to U.S. liability. A subsidiary creates a legal wall between the U.S. operation and the Korean parent — worth the added complexity in almost every case.
U.S. employment is "at-will" — Korea's Labor Standards Act is not. Korean law requires just cause and thirty days' notice (or pay in lieu) for termination. In most U.S. states, an employer can end employment at any time for any legal reason. The tradeoff: U.S. discrimination lawsuits are litigated in court, often before juries, with damages that can surprise Korean employers.
Never ask about age, marital status, or family plans in an interview. These are standard questions in many countries but create real legal risk under U.S. anti-discrimination law — even when asked with no discriminatory intent.
The contract is the deal — not a starting point. American courts apply the parol evidence rule: once you sign a complete written contract, prior conversations generally don't count. Put everything in writing before you sign, unlike the more flexible, good-faith-oriented approach under Korea's Civil Act.
Your KIPO registration doesn't protect you here. Korean IP registration has no automatic effect in the U.S. Separate USPTO trademark and patent filings are necessary, and — unlike Korea's first-to-file system — U.S. trademark priority runs from first use in commerce.
The FCPA follows you globally. If your company has any U.S. connection — even just a bank account — the Foreign Corrupt Practices Act's anti-bribery rules apply to your worldwide operations, not just U.S. activity.
The U.S.–Korea tax treaty reduces, but doesn't eliminate, withholding. Dividends from a U.S. subsidiary back to a Korean parent are generally withheld at a reduced 15% or 10% rate under the treaty, depending on ownership percentage — plan the structure with tax counsel from the start.
Korea is one of the few countries eligible for the E-2 treaty investor visa — the most common visa for Korean entrepreneurs opening a U.S. business, typically requiring at least $100,000–$200,000 at risk in the enterprise. Its main limitation: the E-2 is renewable indefinitely but never leads directly to a green card, so a longer-term plan (L-1A/EB-1C, EB-5, or employer-sponsored categories) is worth discussing early.
Start immigration and tax planning early. Visa categories and transfer-pricing documentation take months to set up properly. The companies that succeed treat the U.S. expansion checklist as a first step, not an afterthought.

This is general information, not legal advice for your specific situation. The full guide covers each of these topics in more depth — download it free, or reach out directly to talk through how it applies to your business.