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Investment Guide

Foreigner Investment Guide    

 

Foreign Investment System

Definition of FDI

FDI (Foreign Direct Investment) refers to an investment made by a foreigner for the purpose of establishing a continued economic relationship with a Korean corporation or a business owned by a Korean citizen, and is based on the FIPA (Foreign Investment Promotion Act) and other related laws.

Foreign Investment Promotion and Protection

  • Unless otherwise stipulated by law, a foreigner may carry out foreign investment activities in Korea without restrictions.
  • Protection of Foreign Investment.
    • · Guarantee on Overseas Remittance, Exceptions to the Safeguard Clause on Foreign Currency Trade
    • · National Treatment, Equal Application of Tax Reduction Regulation, etc.
 

Foreign Investment Procedure

Investment Procedure

Investment Procedure

Investment Type

  • Acquisition of Shares or Equity of a Domestic Business
    This refers to possession of shares or equity of corporation of the Republic of Korea or a business owned by a Korean citizen for the purpose of establishing a continued economic relationship with the relevant corporation or business (including those being established) through participation in managerial activities.
  • Long-term Loans
    An investment is recognized as FDI if the foreign parent company of the foreign-invested company, a foreign investor, or a business under a capital investment relationship with the relevant foreign parent company and the foreign investor provides a loan with a maturity of 5 years or more for the relevant foreign-invested company.
  • Contribution of a Non-profit Organization (NPO)
    A contribution to an NPO is recognized as a foreign investment when the NPO has independent research facilities in the field of science and technology, and meets one of the following conditions:
    • · Having 5 or more regular employees with 3 or more years of research experience and a bachelor's degree in the field of science and technology or with an advanced degree (master's/Ph.D) in a science and technology field; or,
    • · Performing R&D for projects attended with high level technologies according to the Tax Exemptions and Exceptions Act.
 

Registration of foreign-invested company

A foreign investor (or its agent) or a foreign-invested company must register the foreign-invested company at the entrusted agency within 30 days of the occurrence of the causes as follows:

  • - Completion of payment for the investment object (new share acquisition);
  • - Acquisition of existing shares (existing share acquisition);
  • - Acquisition of shares through mergers, etc. (new acquisition of CB conversion, spin-off, etc.); and
  • - Completion of a contribution to a non-profit corporation (new acquisition through stock contribution).
 

Incentives

Land-lease support at low cost (complex-type FIZ).

Tax reduction and exemption (standalone-type or complex-type FIZ).

Financial support (after an objective evaluation and consultation on high-tech businesses, large sized investments, etc.).

※ For further inquiries, please contact us: Office) +82-53-803-3315, E-mail) eunyseo@daegu.go.kr
Foreign investment notification(Invest KOREA (KOTRA), foreign exchange bank) Investment Capital Remittance(foreign exchange bank, carried through customs) Incorporation Registration(court registry office) Incorporation Notification & Business Registration(municipal tax office) Paid-in Capital Transfer to Corporate's Account(foreign exchange bank) Foreign-invested Company Registration(first notified organization)

 

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