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Investment systems and procedures for foreigners

 

Foreign Direct Investment


Foreign Direct Investment (FDI) refers to investments made to establish sustainable and long-term interests with the targeted corporation. FDI exerts considerable influence on the operations of Korean corporations. FDI can be classified into share acquisition, branch and local office establishment, long-term loan provisions, and contributions to non-profit organizations.
 

Foreign Investment Promotion Act


In order to support and create a more convenient environment for foreign investments, Korea has a myriad of legislatures among which the "Foreign Investment Promotion Act" forms the foundation where other laws and ordinances such as the Restriction of Special Taxation Act, the Foreign Exchange Transactions Act, the Act on Designation and Management of Free Trade Zones, and the Act on Designation and Management of Free Economic Zones. These legislations cover key issues including the definition and liberalization of foreign investment, foreign investment procedures, support extended to foreign investment, designation of foreign investment zones, follow-up management of foreign investment, and the operation of foreign investment (working) committees.
 

Promotion and restrictions for foreign investment


Apart from a few special cases, foreigners are allowed conduct their foreign investment operations without restrictions in Korea. The Korean government supports foreign direct investment with more investor protection compared to indirect investments. However, foreign investment can be limited in terms of investment ratio or prohibited altogether for a few business areas including the public sector
 

Foreign investment procedures


There are four steps in foreign investment procedures: report foreign investment, transfer investment capital, register the establishment of corporate body and complete business registration, register foreign investment corporation.
 

Follow-up management of foreign investment


Once foreign investment is complete, the receiving Korean corporation must submit its application to register as a new foreign investment corporation. If changes occur to the corporate entity after the foreign investment corporation was registered including alterations to registered information due to grounds such as changes to foreign controlled shares or cancellation of foreign investment registration due to reasons such as liquidation, these alterations or cancellations to the foreign investment corporation must be filed.




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  • 담당자:Investment Promotion Division
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  • 출판일:20151204