FDI includes loans with maturity of not
less than five years, which is supplied
to a foreign-invested company by (i) an
overseas parent company of the foreign-
invested company, (ii) a foreign investor,
or an enterprise with capital investment
relationship with the investor in an over-
seas parent company of the foreign-in-
vested company or (iii) a foreign investor
(based on the period for loan specified in
the loan contract that has been made for
the first time).
3. contribution to a Non-Profit
A contribution to a non-profit corpora-
tion is recognized as a foreign investment
when the non-profit corporation has in-
dependent research facilities in the field
of science and technology, and meets the
conditions as provided in the Foreign
Investment Promotion Act and the other
relevant laws.
foreign investment report, remittance of
investment fund, registration of incorpo-
ration and business, and registration of a
foreign-invested company.
1. foreign Investment Report
A foreign investor or an agent may report
their investment at Invest KOREA (KO-
TRA), Korea Business Centers (KBC)
of KOTRA, headquarters and branches
of domestic foreign exchange banks, or
domestic branches of delegated foreign
banks. The reporting person should be a
foreign investor or its agent. The process-
ing period for a foreign investment report
is just one day.
an investment by means of purchasing
stocks newly issued by a Korean corpo-
ration or a company run by a national
of the Republic of Korea, the foreigner
should report such fact in advance (pre-
report). In such case, the following basic
documents are necessary:
foreign investment by acquisition of
newly issued stocks;
tor's nationality
an investment in kind with the capital
goods, a foreign investor is required to
apply for the examination and confirma-
tion of the specification of the imported
capital goods prior to customs clearance,
after reporting the foreign investment by
acquisition of newly issued stocks, etc.
Where a foreigner intends to make
an investment by acquisition of stocks
which have already been issued by a
company run by a national of the Re-
public of Korea or a Korean corporation,
he/she should report the fact in advance
(pre-report).
Where an overseas parent company
of a foreign-invested company, a foreign
investor, or an enterprise with capital
investment relationship with the overseas
parent company or the investor intends
to make a foreign investment in form of
long-term loans with maturity of not less
than five years supplied to the foreign-
invested company, the foreign investment
shall be reported in advance (pre-report).
In such case, the following documents
are required:
eign investment in form of long-term
included in case an agent reports the
foreign investment.)
vestment relationship, and documents
certifying the lender's nationality
In principle, investment funds should be
remitted through a foreign currency bank
under the name of the foreign inves-
tor. Funds from domestic sources are
not recognized as foreign investments.
In the process of paying up for stocks,
a bank issues a certificate of paid-up
stocks (required in case of registration
of incorporation) and a certificate of
foreign currency purchase (required in
case of registration of a foreign-invested
company).
3. Registration of Incorporation and
ments to register incorporation and
business at a jurisdictional court and tax
office. When registration of incorporation
and business is completed, a new com-
pany becomes a legally valid corporation.
A bank requests required documents and
transfers paid-in capital to the account of
the newly established corporation.
4. Registration of a foreign-Invested
foreign-invested company should register
the foreign-invested company at delegat-
ed authorities within 30 days after the
occurrence of any of the following cases.
Then all the necessary procedures for the
FDI should be deemed completed.