Overview
An LLC gives members limited liability while letting them set internal governance freely in the articles. Korea adopted it from April 15, 2012.
📌 At a glance
- Korea
- Commercial Act 287-2 ff.
- Liability
- Limited
- Governance
- Flexible; no board required
Comparison (Korea)
| Feature | Stock company | Limited company | LLC |
|---|---|---|---|
| Transfer of interests | Free | Restrictable | Requires other members’ consent |
| Organs | Shareholders, directors, auditor | Members’ meeting, directors | Managing members only |
Pros and cons
Simple and flexible, but cannot issue shares and lacks pass-through taxation in Korea (subject to limited exceptions).
In the US, the draw is tax. Wyoming created the LLC in 1977; the 1997 check-the-box rules let LLCs elect pass-through taxation.
Comparison
| Country | Name |
|---|---|
| Japan | Godo kaisha (since 2006) |
| US | LLC under state law |
| China | *Youxian zeren gongsi*—actually a standard limited company |
Frequently asked questions
- Same as a Korean yuhan hoesa?
- No; the LLC is more partnership-like.
- Can it convert to a stock company?
- Yes, with all members’ consent.
- Can members lose limited liability?
- Through veil piercing in abuse cases.
References
- 대한민국 「상법」 제287조의2~제287조의45(2011. 4. 14. 개정, 2012. 4. 15. 시행).
- 日本「会社法」第575条〜第675条（持分会社）.
- Wyoming Limited Liability Company Act (1977).
- U.S. Treasury Regulations § 301.7701-3 ("check-the-box", effective 1997).