When expanding into South Korea or engaging with local Korean companies, one of the first identifiers you will encounter is the Business Registration Number (BRN), known in Korean as 사업자번호 (sa-eop-ja beon-ho). This 10-digit number plays a central role in the country’s business and tax system, much like a Tax Identification Number (TIN) in the United States or a VAT Number in the European Union.
What is a 사업자번호?
A 사업자번호 is a unique 10-digit code issued to businesses by the National Tax Service of Korea (국세청, NTS).
- Format:
XXX-XX-XXXXX(for example,123-45-67890). - Purpose: It serves as the official identifier for tax filing, issuing tax invoices, opening business bank accounts, licensing and other administrative tasks.
- International comparison:
- United States → Employer Identification Number (EIN)
- United Kingdom → VAT Number or Company UTR (Unique Taxpayer Reference)
- European Union → VAT ID
- India → PAN (Permanent Account Number) or GSTIN (Goods and Services Tax Identification Number)
- China → Unified Social Credit Code (统一社会信用代码)
When and How is it Issued?
The 사업자번호 is issued at the time of business registration (사업자등록).
- Any individual entrepreneur (개인사업자) or corporate entity (법인사업자) must apply for business registration with the local tax office under the National Tax Service.
- Once approved, the NTS assigns the 10-digit 사업자번호.
- This process typically occurs before the business begins commercial activities, as it is required to issue tax invoices (세금계산서) and legally conduct transactions.
For corporate entities, this process follows the corporate registration (법인등록) with the district court. After incorporation, the company must obtain its 사업자번호 from the tax authority.
Is It Mandatory?
Yes. In South Korea, the 사업자번호 is mandatory for:
- Operating a business legally
- Paying corporate or income taxes
- Registering for Value-Added Tax (부가가치세, VAT)
- Import/export activities
- Hiring employees
Without a valid 사업자번호, a business cannot issue tax invoices and may face fines or legal restrictions.
Business Registration Number vs. Corporate Registration Number
South Korea also uses a Corporate Registration Number (법인등록번호), issued by the court upon incorporation. While the two numbers are related, they serve different purposes:
- The 사업자번호 (Business Registration Number) is for taxation and commercial transactions.
- The 법인등록번호 (Corporate Registration Number) is for legal incorporation and company records.
Importantance for Foreign Partners?
For overseas investors, suppliers, and clients, the 사업자번호 provides a reliable way to:
- Verify the legitimacy of a Korean business
- Cross-check company data with the National Tax Service and other official databases
- Ensure compliance in contracts, payments, and due diligence processes
In South Korea, a company without a valid, active Business Registration Number (사업자번호) is treated as a closed business, even if its Corporate Registration Number (법인등록번호) remains active.
Each business listed on KOBDi is checked for its business registration status in real time on every page load.