Yuhan Chaekim Hoesa (유한책임회사) is a newer form (introduced in 2012 via Commercial Code amendments) modelled after U.S.-style LLCs. It mixes features of corporations and partnerships.

Minimum Capital
No minimum required by law (like Chusik/Yuhan). Also subject to the ₩100 M FDI rule for foreign investors to be recognized under FIPA. Typically used by investors meeting that anyway. You can set up with a low capital if not seeking FDI status, but if any foreign member wants FDI benefits (like the investor visa or government support), the company capital should include ₩100 M from that investor.

Ownership Structure
One or more members (no explicit maximum given by law; practical usage suggests it’s meant for smaller groups, but possibly it can have many members). There are membership interests (akin to partnership interests) rather than shares. Flexibility: This form allows more flexible internal arrangements – e.g., distribution of profits need not be exactly pro-rata to ownership if members agree (similar to an LLC operating agreement). It can be structured via its Articles (or Operating Agreement) with custom provisions. Transfer might require member consent (likely similar to Yuhan Hoesa’s restrictions).

Members & Nationality
At least one member (could be an individual or corporation). No Korean nationality requirement. As a new form, it’s increasingly chosen by foreign companies establishing a presence.

Management & Legal Rep in Korea
It requires at least one “manager” (who acts similar to a director or managing partner). It doesn’t require a full board or statutory auditor. Managers can be foreigners and non-resident. This form is prized for flexibility in management – it can be member-managed or manager-managed. The Commercial Act provisions for Yuhan Chaekim are less strict on formal governance, giving founders freedom to contractually set roles and rules.

Taxation
Not a pass-through. Despite being LLC-like, in Korea it’s taxed as a corporation (no flow-through of income to members). So it pays CIT on profits, and distributions to members are taxed as dividends (with WHT for foreign members). There’s no special tax benefit or detriment for being Yuhan Chaekim vs. Yuhan Hoesa; they are treated similarly for tax and legal purposes. One benefit: Yuhan Chaekim might be exempt from external audits regardless of size (the law originally exempted it from the External Audit Act, and as of now it still generally doesn’t require an external audit even if large, though this could change in the future). Also, being relatively new, it may have slightly more lenient disclosure requirements (some details might not be publicly searchable unlike Chusik, though this gap narrowed with online registry info).

Reporting & Compliance
Similar filing obligations for tax (annual returns, VAT, etc.). No publicly accessible shareholder/member registry beyond basic registration. Since it’s considered separate from the older corporation types, the rules on general meetings and boards don’t apply the same way. Members would still document major decisions (like profit distribution) through a resolution or consent. External audit: Currently, Yuhan Chaekim Hoesa is not subject to mandatory external audit requirements under the Act on External Audit (which covers stock companies and limited companies above thresholds) – this was a deliberate attraction. But they must maintain proper accounting and could be asked for records by tax offices or in due diligence.

Ease of Incorporation
Intended to be very flexible and easier to set up and run. Foreign investors increasingly use this form because it combines limited liability with lighter compliance. The process is similar to setting up a Yuhan Hoesa (with FDI filing if foreign investment). This form might require some care to draft the Articles to leverage its flexibility (like setting profit split rules or buyout rules), but otherwise straightforward. 

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Foreign Ownership
Fully open to foreign ownership (no restrictions unique to this form). If anything, it’s promoted to foreigners because it mimics familiar LLC structures and avoids heavy governance. No share concept means no issue with share classes – any special arrangements are done via contract among members.
Liability: Limited. All members are liable only to the extent of their contributions. No member has unlimited liability (unlike Hapmyeong/Hapja partners). This form’s Korean name literally means “company with limited liability.”

Yuhan Chaekim Hoesa (LLC) is a new, flexible entity popular for foreign subsidiaries wanting less formality. It’s like a Korean LLC: limited liability, flexible internal structure, fewer mandatory disclosures, and no need for a full board or audits in most cases. It’s increasingly recommended by advisors when foreign companies don’t need the ability to issue shares or go public, and value simplicity and privacy.