P resum ably，there are three reasons fo r this preference o f SC to other types o f corporation in K orea. F irstly，the differences between，and m erits and dem erits o f each type o f corporations are no t widely know n to korean businessm en，let alone the general public. The four types are rarely distinguished，and thus，w hen som eone m entions the w ord “corporation”，it is understood as a m atter o f course that he or she is implying a SC. S econdly，there is no special benefit such as a tax reduction to any type o f business organizations in K orea other than a S C T hirdly，a SC has its strong advantages. The tw o m ost beneficial incentives o f incorporating a SC form are the limited liability o f the shareholders and the easiness o f raising the capital. U nder the limited liability system ， no shareholder o f a corpo ration can personally be held liable for the debts，obligations or acts o f the corporation. Only directors，officers and insiders bear som e liability for the ir involvement w ith the corporation.