Politics · South Korea · 2 hrs ago
Forum urges South Korea to ease rules for nonprofit foundations
A Seoul forum called for easing rules on nonprofits and public-benefit foundations in South Korea.
The rules require government approval to establish a nonprofit, unlike for-profit companies, which can register if they meet legal requirements.
The approval system dates to 1912 and continued in a 1958 law, according to speakers at the forum.
Approval standards vary between government offices, and organizations may need fresh permission to change their rules, leaders or assets.
Foundations generally cannot spend down their assets, while the tax-free limit for shares donated to public-benefit foundations is normally 5%.
A 2026 survey found that 19% of South Korean organizations said registration was easy, compared with an Asian average of 37%.
Forum participants proposed simpler registration and tax changes, including allowing foundations to spend their assets before closing and raising the tax-free limit for share donations to 15%; these are proposals, not announced changes.
A South Korean forum called for easing rules on nonprofit and public-interest foundations, saying current regulations hinder charitable activity.
The forum was held at the National Assembly Members’ Office Building on October 30 by the Good Regulation Citizens’ Forum and the Korea Nonprofit Organization Evaluation Institute.
South Korea’s Civil Act requires nonprofits to obtain approval from a government agency to establish a legal entity, while approval standards vary among agencies and local governments.
Nonprofits also face restrictions on changing their governing documents, replacing officers and disposing of assets, as well as limits on donations of company shares.
Forum participants proposed lowering the establishment threshold, allowing “sunset foundations” to spend their assets before closing, and raising the tax-exempt limit for share donations.
- Who
- The Good Regulation Citizens’ Forum and the Korea Nonprofit Organization Evaluation Institute held the forum. Nonprofit-sector representatives called for regulatory changes.
- What
- A forum urged South Korea to ease rules governing nonprofit and public-interest foundations.
- When
- October 30; the article was published on October 31, 2026.
- Where
- National Assembly Members’ Office Building, South Korea.
- Why
- Participants said old approval and asset rules hinder the establishment and work of public-interest organizations.
This story does not have two clearly opposing sides.
The legal-entity establishment approval system was introduced during the Japanese colonial period.
The Civil Act’s Article 32 carried the approval system into law.
The Good Regulation Citizens’ Forum and the Korea Nonprofit Organization Evaluation Institute held the forum at the National Assembly Members’ Office Building.
- Forum date
- October 30, 2026
- Establishment rule
- Civil Act Article 32 requires government approval for nonprofit legal entities.
- Share-donation tax exemption
- Generally limited to 5%.
- Proposed share-donation limit
- Raise the exemption limit to 15%.
- Survey finding
- 19% of South Korean organizations said legal registration was easy, compared with an Asian average of 37%.
What people are saying
The legal-entity establishment approval system introduced in 1912 during the Japanese colonial period was carried over unchanged into Article 32 of the Civil Act enacted in 1958, and has become an obstacle to establishing nonprofit and public-interest organizations.
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