Source: https://rivet.global/blog/korea-saas-companies-billing-overseas-in-usd
Published: 2026-07-04 · Updated: 2026-07-04 · By Alexia M.

# Korean SaaS companies billing overseas customers in USD

How Korean software companies bill customers abroad: zero-rated VAT on services paid in foreign currency, card processors, USD receipts, FX evidence and 2026 tax rates.

## Key takeaways

- Services supplied to foreign businesses and paid in foreign currency through a foreign exchange bank are generally zero rated for Korean VAT.
- Korea's corporate tax rates rose by one percentage point per bracket to 10%, 20%, 22% and 25% for fiscal years from 1 January 2026, plus 10% local income tax.
- Card processors pay out in USD or KRW; converting every payout to won adds a margin each time.
- Holding USD for USD costs, such as cloud, ads and overseas contractors, cuts the number of conversions.

Korean software companies selling abroad have a currency mismatch built in. Revenue arrives in USD and EUR. Salaries, rent and most taxes are in won. The way money moves between those two sides decides margins more than most pricing changes.

## VAT on overseas sales

Korea's VAT Act zero rates many services supplied to foreign businesses when payment comes in foreign currency through a foreign exchange bank. A US company subscribing to a Korean analytics tool and paying in dollars is usually a zero-rated sale. Keep the contract, invoice and foreign currency receipt together; that is the evidence.

## Corporate tax in 2026

Korea's 2026 tax reform, enacted in December 2025, raised corporate tax by one point per bracket:

| Taxable income | 2026 rate |
|---|---|
| Up to KRW 200 million | 10% |
| KRW 200 million to 20 billion | 20% |
| KRW 20 billion to 300 billion | 22% |
| Above KRW 300 billion | 25% |

Local income tax adds 10% of the national tax. A later bill proposed cutting the first bracket again; check its status before planning.

## Where FX costs hide

A company with $100,000 of monthly card revenue that converts each payout to won, then buys dollars to pay AWS and US contractors, converts twice. On a 1% margin each way, that is up to $2,000 a month.

## A better flow

1. Settle USD payouts into a USD balance.
2. Pay USD costs from it.
3. Convert the surplus to won in planned amounts.
4. Keep each receipt matched to its invoice for the bank and the NTS.

## Paying into South Korea: the local rail

| What | Detail |
|---|---|
| Local rail | Interbank transfers through KFTC's electronic banking network |
| Run by | Korea Financial Telecommunications and Clearings Institute |
| Settlement | Seconds, 24/7 |

Source: [KFTC](https://www.kftc.or.kr/eng). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet gives registered companies USD details on the free Starter plan and EUR and GBP on Growth, with cards for USD software spend and payouts to 120+ countries. Check our eligibility list for Korean companies. Rivet is not a bank; regulated partner institutions hold the funds. See [Korea exporters and US clients](/blog/korea-exporters-us-clients-after-2025-tariffs).

## Questions

### Do Korean SaaS companies charge VAT to overseas customers?

Generally not to foreign businesses paying in foreign currency, which is zero rated. Sales to foreign consumers and to Korean customers follow different rules. Check with your tax adviser.

### What are Korea's corporate tax rates for 2026?

10% up to KRW 200 million, then 20%, 22% and 25% in higher brackets, for fiscal years beginning on or after 1 January 2026, plus local income tax of 10% of the national tax. A later bill proposed cutting the first bracket again; check its status.

### How should we receive USD from US customers?

Card processors pay out to your account; enterprise customers often pay by bank transfer. US customers prefer paying US account details by ACH over sending an international wire.

### What evidence do banks ask for?

Under the Foreign Exchange Transactions Act, banks can ask for invoices and contracts to confirm what a foreign receipt is for. Keep them linked to each payment.